Company: ADAMM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001273685-25-000047
Chunk: 130

Company: ADAMAS TRUST, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 130
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Repurchase Agreements

As of March 31, 2025, the Company had $4.1 billion outstanding under repurchase agreements with third-party financial institutions to fund a portion of its investment securities available for sale and certain securities owned in Consolidated SLST.  These repurchase agreements are short-term financings that bear interest rates typically based on a spread to SOFR and are secured by the investment securities which they finance.  Upon entering into a financing transaction, our counterparties negotiate a “haircut”, which is the difference expressed in percentage terms between the fair value of the collateral and the amount the counterparty will advance to us.  The size of the haircut represents the counterparty’s perceived risk associated with holding the investment securities as collateral.  The haircut provides counterparties with a cushion for daily market value movements that reduce the need for margin calls or margins to be returned as normal daily changes in investment security market values occur. The Company expects to roll outstanding amounts under its repurchase agreements into new repurchase agreements or other financings, or to repay outstanding amounts, prior to or at maturity.

As of March 31, 2025, the Company had no repurchase agreement exposure where the amount of investment securities at risk was in excess of 5% of the Company's stockholders’ equity. As of March 31, 2025, the weighted average interest rate for repurchase agreements secured by investment securities was 4.49%.

The following table details the quarterly average balance, ending balance and maximum balance at any month-end during each quarter in 2025, 2024 and 2023 for our repurchase agreements secured by investment securities (dollar amounts in thousands):

Quarter EndedQuarterly AverageBalanceEnd of QuarterBalanceMaximum Balanceat any Month-EndMarch 31, 2025$4,000,724 $4,128,622 $4,156,941 December 31, 20243,328,795 3,516,611 3,516,611 September 30, 20242,772,203 3,045,597 3,045,597 June 30, 20242,202,770 2,447,851 2,447,851 March 31, 20242,078,041 2,057,361 2,126,993 December 31, 20231,851,577 1,862,063 1,870,941 September 30