SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Segment Reporting Information, by Segment

The following tables present the reportable operating segments related to the Company’s results of operations for the three and nine months ended September 30, 2024 and 2023:


Three Months Ended September 30, 2024
	Agency		Resi-credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	830,407	$	396,694	$	—	$	2,240	$	1,229,341
Interest expense	885,982		328,440		—		1,518		1,215,940
Net interest income	(55,575)		68,254		—		722		13,401
Servicing and related income	—		—		122,583		—		122,583
Servicing and related expense	—		—		12,988		—		12,988
Net servicing income	—		—		109,595		—		109,595
Other income (loss)	(6,658)		36,028		(33,967)		1,738		(2,859)
Less: Total general and administrative expenses	16,154		13,868		8,876		5,023		43,921
Income (loss) before income taxes	(78,387)		90,414		66,752		(2,563)		76,216
Income taxes	23		(8,263)		2,126		(21)		(6,135)
Net income (loss)	(78,410)		98,677		64,626		(2,542)		82,351
Less: Net income (loss) attributable to noncontrolling interest	—		15,906		—		—		15,906
Net income (loss) attributable to Annaly	(78,410)		82,771		64,626		(2,542)		66,445
Dividends on preferred stock	—		—		—		41,628		41,628
Net income (loss) available (related) to common stockholders	(78,410)		82,771		64,626		(44,170)		24,817
Unrealized gains (losses) on available-for-sale securities	428,955		—		—		—		428,955
Reclassification adjustment for net (gains) losses included in net income (loss)	15,769		—		—		—		15,769
Other comprehensive income (loss)	444,724		—		—		—		444,724
Comprehensive income (loss)	366,314		98,677		64,626		(2,542)		527,075
Comprehensive income (loss) attributable to noncontrolling interests	—		15,906		—		—		15,906
Comprehensive income (loss) attributable to Annaly	$	366,314	$	82,771	$	64,626	$	(2,542)	$	511,169
Noncash investing and financing activities:
Receivable for unsettled trades	727,124		—		39,217		—		766,341
Payable for unsettled trades	1,811,196		—		74,090		—		1,885,286
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	444,724		—		—		—		444,724
Dividends declared, not yet paid	—		—		—		362,731		362,731
Total assets
Total assets	$	71,699,019	$	26,235,097	$	3,371,113	$	210,766	$	101,515,995


Three Months Ended September 30, 2023
	Agency		Resi-credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	756,479	$	239,194	$	—	$	5,812	$	1,001,485
Interest expense	849,422		193,271		—		4,126		1,046,819
Net interest income	(92,943)		45,923		—		1,686		(45,334)
Servicing and related income	—		—		97,620		—		97,620
Servicing and related expense	—		—		9,623		—		9,623
Net servicing income	—		—		87,997		—		87,997
Other income (loss)	(528,640)		(12,974)		(21,870)		4,038		(559,446)
Less: Total general and administrative expenses	14,576		12,195		7,657		5,481		39,909
Income (loss) before income taxes	(636,159)		20,754		58,470		243		(556,692)
Income taxes	727		5,985		5,858		(178)		12,392
Net income (loss)	(636,886)		14,769		52,612		421		(569,084)
Less: Net income (loss) attributable to noncontrolling interest	—		(6,879)		—		—		(6,879)
Net income (loss) attributable to Annaly	(636,886)		21,648		52,612		421		(562,205)
Dividends on preferred stock	—		—		—		36,854		36,854
Net income (loss) available (related) to common stockholders	(636,886)		21,648		52,612		(36,433)		(599,059)
Unrealized gains (losses) on available-for-sale securities	(825,286)		—		—		—		(825,286)
Reclassification adjustment for net (gains) losses included in net income (loss)	513,041		—		—		—		513,041
Other comprehensive income (loss)	(312,245)		—		—		—		(312,245)
Comprehensive income (loss)	(949,131)		14,769		52,612		421		(881,329)
Comprehensive income (loss) attributable to noncontrolling interests	—		(6,879)		—		—		(6,879)
Comprehensive income (loss) attributable to Annaly	$	(949,131)	$	21,648	$	52,612	$	421	$	(874,450)
Noncash investing and financing activities:
Receivable for unsettled trades	1,039,173		—		8,393		—		1,047,566
Payable for unsettled trades	2,144,692		1,546		38,231		29,850		2,214,319
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	(312,245)		—		—		—		(312,245)
Dividends declared, not yet paid	—		—		—		321,629		321,629
Total assets
Total assets	$	70,047,768	$	16,616,765	$	2,647,052	$	336,838	$	89,648,423


Nine Months Ended September 30, 2024
	Agency		Resi-credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	2,433,672	$	1,059,247	$	—	$	8,235	$	3,501,154
Interest expense	2,563,077		872,118		—		5,451		3,440,646
Net interest income	(129,405)		187,129		—		2,784		60,508
Servicing and related income	—		—		358,182		—		358,182
Servicing and related expense	—		—		37,821		—		37,821
Net servicing income	—		—		320,361		—		320,361
Other income (loss)	109,384		189,851		(12,513)		3,336		290,058
Less: Total general and administrative expenses	47,604		39,690		25,977		14,111		127,382
Income (loss) before income taxes	(67,625)		337,290		281,871		(7,991)		543,545
Income taxes	748		(9,966)		14,195		(124)		4,853
Net income (loss)	(68,373)		347,256		267,676		(7,867)		538,692
Less: Net income (loss) attributable to noncontrolling interest	—		18,838		—		—		18,838
Net income (loss) attributable to Annaly	(68,373)		328,418		267,676		(7,867)		519,854
Dividends on preferred stock	—		—		—		115,847		115,847
Net income (loss) available (related) to common stockholders	(68,373)		328,418		267,676		(123,714)		404,007
Unrealized gains (losses) on available-for-sale securities	92,843		—		—		—		92,843
Reclassification adjustment for net (gains) losses included in net income (loss)	530,354		—		—		—		530,354
Other comprehensive income (loss)	623,197		—		—		—		623,197
Comprehensive income (loss)	554,824		347,256		267,676		(7,867)		1,161,889
Comprehensive income (loss) attributable to noncontrolling interests	—		18,838		—		—		18,838
Comprehensive income (loss) attributable to Annaly	$	554,824	$	328,418	$	267,676	$	(7,867)	$	1,143,051
Noncash investing and financing activities:
Receivable for unsettled trades	727,124		—		39,217		—		766,341
Payable for unsettled trades	1,811,196		—		74,090		—		1,885,286
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	623,197		—		—		—		623,197
Dividends declared, not yet paid	—		—		—		362,731		362,731
Total assets
Total assets	$	71,699,019	$	26,235,097	$	3,371,113	$	210,766	$	101,515,995


Nine Months Ended September 30, 2023
	Agency		Resi-credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	2,058,371	$	658,849	$	—	$	24,009	$	2,741,229
Interest expense	2,279,586		504,011		—		15,466		2,799,063
Net interest income	(221,215)		154,838		—		8,543		(57,834)
Servicing and related income	—		—		265,683		—		265,683
Servicing and related expense	—		—		26,433		—		26,433
Net servicing income	—		—		239,250		—		239,250
Other income (loss)	(1,415,438)		91,439		61,314		(4,602)		(1,267,287)
Less: Total general and administrative expenses	44,401		36,757		22,210		20,284		123,652
Income (loss) before income taxes	(1,681,054)		209,520		278,354		(16,343)		(1,209,523)
Income taxes	1,213		14,034		22,706		(251)		37,702
Net income (loss)	(1,682,267)		195,486		255,648		(16,092)		(1,247,225)
Less: Net income (loss) attributable to noncontrolling interest	—		(7,797)		—		—		(7,797)
Net income (loss) attributable to Annaly	(1,682,267)		203,283		255,648		(16,092)		(1,239,428)
Dividends on preferred stock	—		—		—		104,495		104,495
Net income (loss) available (related) to common stockholders	(1,682,267)		203,283		255,648		(120,587)		(1,343,923)
Unrealized gains (losses) on available-for-sale securities	(443,957)		—		—		—		(443,957)
Reclassification adjustment for net (gains) losses included in net income (loss)	1,458,077		—		—		—		1,458,077
Other comprehensive income (loss)	1,014,120		—		—		—		1,014,120
Comprehensive income (loss)	(668,147)		195,486		255,648		(16,092)		(233,105)
Comprehensive income (loss) attributable to noncontrolling interests	—		(7,797)		—		—		(7,797)
Comprehensive income (loss) attributable to Annaly	$	(668,147)	$	203,283	$	255,648	$	(16,092)	$	(225,308)
Noncash investing and financing activities:
Receivable for unsettled trades	1,039,173		—		8,393		—		1,047,566
Payable for unsettled trades	2,144,692		1,546		38,231		29,850		2,214,319
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	1,014,120		—		—		—		1,014,120
Dividends declared, not yet paid	—		—		—		321,629		321,629
Total assets
Total assets	$	70,047,768	$	16,616,765	$	2,647,052	$	336,838	$	89,648,423