Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 427

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 427
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 fair value to ensure they represent current market conditions. This review includes surveying similar market transactions and comparisons to interest pricing models as well as offerings of like securities by dealers. Any changes to the valuation methodology are reviewed by management to ensure the changes are appropriate. As markets and products develop and the pricing for certain products becomes more transparent, the Company continues to refine its valuation methodologies. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of each reporting date, which may include periods of market dislocation, during which time price transparency may be reduced. This condition could cause the Company’s financial instruments to be reclassified from Level 2 to Level 3 in future periods.    

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The following table presents the Company’s financial instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, respectively, on the Company’s condensed consolidated balance sheets (dollar amounts in thousands):Measured at Fair Value on a Recurring Basis atSeptember 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets carried at fair value        Investment securities available for sale:        Agency RMBS$— $6,628,003 $— $6,628,003 $— $3,136,812 $— $3,136,812 Non-Agency RMBS— 28,174 — 28,174 — 69,687 — 69,687 U.S. Treasury securities— 182,538 — 182,538 — 622,045 — 622,045 Residential loans:Residential loans— — 308,422 308,422 — — 632,266 632,266 Consolidated SLST— — 1,182,599 1,182,599 — — 965,672 965,672 Residential loans held in securitization trusts— — 2,660,626 2,660