Company: NLY-PF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036724
Chunk: 102

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 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 June 30, 2025 and December 31, 2024, the Company had $3.7 billion and $3.5 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 $0.2 million and $10.0 million at June 30, 2025 and December 31, 2024, respectively.The following table presents the activity of the Company’s loan investments, excluding loans transferred or pledged to securitization vehicles, for the six months ended June 30, 2025:Residential Loans(dollars in thousands)Beginning balance January 1, 2025$3,546,902 Purchases / originations8,073,294 Sales and transfers (1)(7,798,003)Principal payments(129,271)Gains / (losses)39,685 (Amortization) / accretion(10,335)Ending balance June 30, 2025$3,722,272 (1)  Includes transfer of residential loans to securitization vehicles with a carrying value of $7.0 billion during the six months ended June 30, 2025.Residential The Company’s residential mortgage loans are primarily comprised of performing adjustable-rate and fixed-rate whole loans. The Company’s residential loans are accounted for under the fair value option with changes in fair value reflected in Net gains (losses) on investments and other in the Consolidated Statements of Comprehensive Income (Loss). The Company also consolidates securitization trusts in which it retained securities because it also has certain powers and rights to direct the activities of such trusts. Refer to the “Variable Interest Entities” Note for further information related to the Company’s consolidated residential mortgage loan trusts.The mortgage loans are secured by first liens on primarily one-to-four family residential properties. A subsidiary of the Company has engaged a third party to act as its