Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 27

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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5.

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Residential Loans Held for Sale, at Fair ValueResidential loans held for sale, at fair value, consist of business purpose loans originated by Constructive and held for sale to secondary market investors as of September 30, 2025. Residential loans held for sale are presented at fair value on the Company's condensed consolidated balance sheets as a result of a fair value election. Subsequent changes in fair value are reported in current period earnings and presented in mortgage banking activities, net on the Company’s condensed consolidated statements of operations. Direct loan origination costs and loan origination fee income are immediately recognized through earnings as a result of the fair value option election.The following table details activity of residential loans held for sale between July 15, 2025 and September 30, 2025 (dollar amounts in thousands):Principal balance of loans acquired through business combination$142,324 Principal balance of loans originated382,443 Principal balance of loans sold to third parties(213,333)Proceeds from repayments(137)Principal balance of loans transferred from residential loans held for sale to residential loans(208,858)   Principal balance as of September 30, 2025$102,439 The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans held for sale, at fair value as of September 30, 2025 are as follows:September 30, 2025Ohio12.5 %Pennsylvania12.0 %New Jersey10.8 %Illinois9.3 %Tennessee8.4 %Mortgage Banking Activities, NetThe following table summarizes the components of mortgage banking activities, net for the three and nine months ended September 30, 2025 (dollar amounts in thousands):Residential loan origination and other fees$5,511 Gains on residential loans held for sale, net (1)8,592    Mortgage banking activities, net$14,103 (1)Includes gains on sale and unrealized gains, net of provision for loan repurchases, and gains on interest rate lock commitments. Interest rate lock commitments are accounted for by the Company as derivative instruments (see Note 10).

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5.      Multi-family Loans, at Fair ValueThe Company's multi-family loans consisting of its preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets are presented at fair value on the Company's condensed consolidated balance sheets as a result