Company: NLY-PF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036724
Chunk: 235

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 235
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, if all principal and interest amounts contractually due are reasonably assured of repayment within a reasonable period of time and there is a sustained period of repayment performance by the borrower.The Company has made an accounting policy election not to measure an allowance for loans losses for accrued interest receivable. If interest receivable is deemed to be uncollectible or not collected within 90 days of its contractual due date for commercial loans carried at amortized cost, it is written off through a reversal of interest income. Any interest written off that is recovered is recognized as interest income.Refer to the “Interest Income and Interest Expense” Note for further discussion of interest income.Income Taxes – The Company has elected to be taxed as a REIT and intends to comply with the provisions of the Code, with respect thereto. As a REIT, the Company will not incur federal income tax to the extent that it distributes its taxable income to its stockholders. The Company and certain of its direct and indirect subsidiaries have made separate joint elections to treat these subsidiaries as taxable REIT subsidiaries (“TRSs”). As such, each of these TRSs is taxable as a domestic C corporation and subject to federal, state and local income taxes based upon its taxable income. Refer to the “Income Taxes” Note for further discussion on income taxes.Recent Accounting PronouncementsThe Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). The Company reviewed recently issued ASUs and determined that they were not expected to have a significant impact on the Company’s consolidated financial statements when adopted or did not have a significant impact on the Company’s consolidated financial statements upon adoption.

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ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 1.  Financial Statements

4. FINANCIAL INSTRUMENTSThe following table presents characteristics for certain of the Company’s financial instruments at June 30, 2025 and December 31, 2024.Financial Instruments (1)Balance Sheet Line ItemType / FormMeasurement BasisJune 30, 2025December 31, 2024Assets(dollars in thousands)SecuritiesAgency mortgage-backed securities (2)Fair value, with unrealized gains (losses) through other comprehensive income$7,402,350 $8,234,911 SecuritiesAgency mortgage-backed securities (3)Fair value, with unrealized gains (losses) through earnings64,354,288 59,199,157 SecuritiesResidential credit risk transfer securitiesFair value, with unreal