Company: NLY-PF
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005451
Chunk: 169

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 169
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 and disability. Delivery of the underlying shares of common stock, which generally occurs over a three-year period, is conditioned on the grantees satisfying certain vesting and other requirements outlined in the award agreements.The Company recognized equity-based compensation expense of $23.2 million for the year ended December 31, 2024.  As of December 31, 2024, there was $27.9 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 1.83 years.

F-31

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESFinancial Statements

16.  INTEREST INCOME AND INTEREST EXPENSERefer to the “Significant Accounting Policies” Note for details surrounding the Company’s accounting policy related to net interest income on securities and loans.The following table summarizes the interest income recognition methodology for Residential Securities: Interest Income MethodologyAgency Fixed-rate pass-through (1)Effective yield (3)Adjustable-rate pass-through (1)Effective yield (3)Multifamily (1)Contractual Cash FlowsCMO (1)Effective yield (3)Reverse mortgages (2)ProspectiveInterest-only (2)ProspectiveResidential credit CRT (2)ProspectiveAlt-A (2)ProspectivePrime (2)ProspectiveSubprime (2)ProspectiveNPL/RPL (2)ProspectivePrime jumbo (2)Prospective(1) Changes in fair value are recognized in Other comprehensive income (loss) in the accompanying Consolidated Statements of Comprehensive Income (Loss) for securities purchased prior to July 1, 2022. Effective July 1, 2022, changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss) for newly purchased securities.(2) Changes in fair value are recognized in Net gains (losses) on investments and other in the accompanying Consolidated Statements of Comprehensive Income (Loss).(3) Effective yield is recalculated for differences between estimated and actual prepayments and the amortized cost is adjusted as if the new effective yield had been applied since inception.The following table presents the components of the Company’s interest income and interest expense for the years ended December 31, 2024, 2023 and 2022. For the Years Ended December 31, 202420232022Interest income(dollars in thousands