Company: NLY-PF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023811
Chunk: 94

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 94
---
2024$32,924 $(471,172)$(438,248)

11

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 1.  Financial 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 March 31, 2025 and December 31, 2024, the Company had $3.9 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 $6.3 million and $10.0 million at March 31, 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 three months ended March 31, 2025:Residential Loans(dollars in thousands)Beginning balance January 1, 2025$3,546,902 Purchases / originations3,919,866 Sales and transfers (1)(3,595,522)Principal payments(48,269)Gains / (losses)42,180 (Amortization) / accretion(4,602)Ending balance March 31, 2025$3,860,555 (1)  Includes transfer of residential loans to securitization vehicles with a carrying value of $3.2 billion during the three months ended March 31, 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