Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 236

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 236
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 periods continued to have positive impacts on our residential loan and investment securities portfolios to a greater extent than the effect of the same movement in interest rates on our financing reported at fair value.

(Losses) Gains on Derivative Instruments, Net

The following table presents the components of (losses) gains on derivative investments, net for the three and nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands):

For the Three Months Ended September 30,For the Nine Months Ended September 30,20252024$ Change20252024$ ChangeUnrealized losses on derivative instruments$(3,392)$(56,282)$52,890 $(110,931)$(5,739)$(105,192)Realized (losses) gains on derivative instruments(9,614)(4,358)(5,256)24,157 9,781 14,376 Total (losses) gains on derivative instruments, net$(13,006)$(60,640)$47,634 $(86,774)$4,042 $(90,816)

The decrease in losses in the three-month period was primarily driven by changes in interest rates during the period which impact the valuation of our derivative instruments, mainly interest rate swaps. The Company also recognized realized losses on the settlement of derivative instruments during the three-month period. 

The increase in losses in the nine-month period was primarily related to decreases in interest rates, which resulted in lower valuations of our interest rate swaps. This was partially offset by net gains realized on contract terminations and net payments received on derivative instruments.

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Mortgage Banking Activities, Net

The following table presents the components of mortgage banking activities, net for the three and nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands):

For the Three Months Ended September 30,For the Nine Months Ended September 30,20252024$ Change20252024$ ChangeResidential loan origination and other fees$5,511 $— $5,511 $5,511 $— $5,511 Gains on residential loans held for sale, net8,592 — 8,592 8,592 — 8,592 Mortgage banking activities, net$14,103 $— $14,103 $14,103 $— $14,103 

The increase in