Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 257

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 257
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 a decrease in the cost of financing due to the benefit of our in-the-money interest rate swaps.

Our adjusted net interest income decreased in 2023 as compared to the prior year.  While adjusted interest income remained relatively flat, our adjusted interest expense increased in 2023, primarily due to additional repurchase agreement and securitization financings and an increase in the cost of financing due to base interest rate movements partially offset by the benefit of our interest rate swaps. 

Net interest spread decreased in 2023 due to a combination of a decrease in yield on Average Interest Earning Assets and an increase in our cost of financing.  The decrease in our yield on Average Interest Earning Assets was primarily due to 1) portfolio run-off of higher yielding business purpose loans, 2) an increase in business purpose loans held in non-accrual status, 3) the sale of certain higher yielding ABS in the second half of 2022 and 4) investment in lower yielding Agency RMBS in 2023. The previously described increase in cost of financing combined with the decrease in yield to reduce net interest spread in 2023.

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A reconciliation of GAAP interest income to adjusted interest income, GAAP interest expense to adjusted interest expense and GAAP total net interest income (loss) to adjusted net interest income (loss) for the years ended December 31, 2024, 2023 and 2022, respectively, is presented below (dollar amounts in thousands):

Years Ended December 31,202420232022Single-FamilyMulti-FamilyCorporate/OtherTotalSingle-FamilyMulti-FamilyCorporate/OtherTotalSingle-FamilyMulti-FamilyCorporate/OtherTotalGAAP interest income$383,972 $10,755 $6,553 $401,280 $244,891 $13,707 $62 $258,660 $238,915 $13,499 $5,974 $258,388 GAAP interest expense(290,483)— (26,942)(317,425)(176,890)— (15,244)(192,134)(119,809)(152)(9,458)(129,419)GAAP total net interest income (loss)$93,489 $10,755 $(20,389)$83,855 $68,001 $13,707 $(15,182)$66,526 $119,106 $13,347 $(3