Company: ADAMM
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001273685-25-000088
Chunk: 48

Company: ADAMAS TRUST, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 the three and nine months ended September 30, 2025 and 2024, respectively (dollar amounts in thousands):For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Pretax income (loss) of disposal group held for sale$155 $(1,588)$(6,886)$(62,120)Pretax (income) loss of disposal group attributable to non-controlling interest in Consolidated VIEs(80)273 479 6,411 Pretax income (loss) of disposal group attributable to Company's common stockholders$75 $(1,315)$(6,407)$(55,709)

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10.      Derivative InstrumentsThe Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company enters into derivative financial instruments in connection with its risk management activities. These derivative instruments may include interest rate swaps, interest rate caps, TBAs, credit default swaps, futures and options contracts such as options on credit default swap indices, equity index options, swaptions and options on futures. The Company may also purchase options on U.S. Treasury futures or invest in other types of mortgage derivative securities. Additionally, Constructive may enter into IRLCs related to the origination of business purpose loans. The Company elected not to apply hedge accounting for its derivative instruments. The following table summarizes the Company's derivative instruments as of September 30, 2025 and December 31, 2024, respectively (dollar amounts in thousands):Fair ValueType of Derivative InstrumentConsolidated Balance Sheet LocationSeptember 30, 2025December 31, 2024Interest rate capsOther assets$150 $56 OptionsOther assets79 — IRLCsOther assets2,383 — Interest rate swapsOther assets— — FuturesOther assets— — Total derivative assets (1)$2,612 $56 FuturesOther liabilities$— $— TBAsOther liabilities(121)— Credit default swapsOther liabilities— — Interest rate swapsOther liabilities— — Total derivative liabilities$(121)$— (1)Excludes interest rate cap contracts held by certain Consolidated Real Estate VIEs included in other assets in disposal group held for sale as of December 31, 2024 (see Note 9). 

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The Company elects to net the fair value of its