Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 43

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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559 6,138 Pretax loss of disposal group attributable to Company's common stockholders$(3,612)$(11,286)$(6,482)$(54,394)

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10.      Derivative InstrumentsThe Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company enters into derivative financial instruments in connection with its risk management activities. These derivative instruments may include interest rate swaps, interest rate caps, TBAs, credit default swaps, futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures. The Company may also purchase options on U.S. Treasury futures or invest in other types of mortgage derivative securities. The Company elected not to apply hedge accounting for its derivative instruments. The following table summarizes the Company's derivative instruments as of June 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):Fair ValueType of Derivative InstrumentConsolidated Balance Sheet LocationJune 30, 2025December 31, 2024Interest rate capsOther assets$269 $56 TBAsOther assets105 — Interest rate swapsOther assets— — U.S. Treasury futuresOther assets— — Total derivative assets (1)$374 $56 U.S. Treasury futuresOther liabilities$— $— Credit default swapsOther liabilities— — Interest rate swapsOther liabilities— — Total derivative liabilities$— $— (1)Excludes interest rate cap contracts held by certain Consolidated Real Estate VIEs included in other assets in disposal group held for sale (see Note 9). 

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The Company elects to net the fair value of its derivative contracts by counterparty when appropriate and accounts for  the receipt or payment of variation margin as a direct reduction of or increase in the carrying value of the related asset or liability. The following tables present a reconciliation of gross derivative assets and liabilities to net amounts presented in the accompanying condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):June 30, 2025Gross Amount of Recognized Assets (Liabilities)Gross Amounts Offset in Balance SheetsVariation MarginNet Amounts of Assets (Liabilities) Presented in Balance SheetsDerivative assetsInterest rate caps$269 $— $— $269 TBAs105 —