Company: NLY-PF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023811
Chunk: 149

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 149
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 payments associated with MAC interest rate swaps are not reflected in the net interest component of interest rate swaps, which is presented in Net gains (losses) on derivatives in the Consolidated Statements of Comprehensive Income (Loss).

Similarly, economic net interest income (excluding PAA), as computed below, provides investors with additional information to enhance their understanding of the net economics of our primary business operations.

The following tables present a reconciliation of GAAP interest income and GAAP interest expense to non-GAAP interest income (excluding PAA), economic interest expense and economic net interest income (excluding PAA), respectively, for the periods presented:

Interest Income (excluding PAA)

 GAAP Interest IncomePAA Cost(Benefit)Interest Income (excluding PAA) *For the three months ended(dollars in thousands)March 31, 2025$1,317,108 $12,296 $1,329,404 March 31, 2024$1,094,488 $(3,013)$1,091,475 *   Represents a non-GAAP financial measure. Refer to disclosures within this section above for additional information on non-GAAP financial measures.

Economic Interest Expense and Economic Net Interest Income (excluding PAA)

 GAAPInterestExpenseAdd: Net Interest Component of Interest Rate Swaps and Net Interest on Initial MarginEconomic InterestExpense * (1)GAAP NetInterestIncomeLess: Net Interest Componentof Interest Rate Swaps and Net Interest on Initial MarginEconomicNet InterestIncome *Add: PAACost(Benefit)Economic Net Interest Income (excluding PAA) *For the three months ended(dollars in thousands)March 31, 2025$1,097,137 $(204,389)$892,748 $219,971 $(204,389)$424,360 $12,296 $436,656 March 31, 2024$1,100,939 $(330,149)$770,790 $(6,451)$(330,149)$323,698 $(3,013)$320,685 *  Represents a non-GAAP financial measure. Refer to disclosures within this section above for additional information on non-GAAP financial measures.(1) Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and, beginning with the quarter ended June 30, 2024, net interest on initial margin related to interest rate swaps, which is reported in Other