Company: NLY-PF
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005451
Chunk: 139

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 16
Chunk 139
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 these investments because the decline in value is not related to credit quality, the Company currently has not made a decision to sell the securities nor is it more likely than not that the securities will be required to be sold before recovery.  During the years ended December 31, 2024 and 2023, the Company disposed of $21.4 billion and $36.4 billion amortized cost basis of Residential Securities, respectively. The following table presents the Company’s net gains (losses) from the disposal of Residential Securities for the years ended December 31, 2024 and 2023, which is included in Net gains (losses) on investments and other in the Consolidated Statements of Comprehensive Income (Loss).  Gross Realized GainsGross Realized LossesNet Realized Gains (Losses)For the year ended(dollars in thousands)December 31, 2024$90,968 $(977,010)$(886,042)December 31, 2023$29,668 $(2,920,487)$(2,890,819)

F-13

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESFinancial Statements

6. LOANSThe Company invests in residential loans. Loans are classified as either held for investment or held for sale. Loans are eligible to be accounted for under the fair value option. If loans are elected under the fair value option, they are carried at fair value with changes in fair value recognized in earnings. Otherwise, loans held for investment are carried at cost less impairment and loans held for sale are accounted for at the lower of cost or fair value.Excluding loans transferred or pledged to securitization vehicles, as of December 31, 2024 and 2023, the Company had $3.5 billion and $2.4 billion, respectively, of loans for which the fair value option was elected. If the Company intends to sell or securitize the loans and the securitization vehicle is not expected to be consolidated, the loans are classified as held for sale. Any origination fees and costs or purchase premiums or discounts are deferred and recognized upon sale. The Company determines the fair value of loans held for sale on an individual loan basis. The carrying value of the Company’s residential loans held for sale was $10.0 million and $1.2 million at December 31, 2024 and 2023, respectively.Allowance for Loss