Note 4 - Repurchase Agreements and Reverse Purchase Agreements

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

NOTE 4. REPURCHASE AGREEMENTS AND REVERSE REPURCHASE AGREEMENTS

Repurchase Agreements

The Company pledges certain of its RMBS as collateral under repurchase agreements with financial institutions. Interest rates are generally fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is generally paid at the termination of a borrowing. If the fair value of the pledged securities declines, lenders will typically require the Company to post additional collateral or pay down borrowings to re-establish agreed upon collateral requirements, referred to as "margin calls." Similarly, if the fair value of the pledged securities increases, lenders may release collateral back to the Company. As of March 31, 2026, the Company had met all margin call requirements.

As of March 31, 2026 and December 31, 2025, the Company’s repurchase agreements had remaining maturities as summarized below:

($ in thousands)
	OVERNIGHT		BETWEEN 2			BETWEEN 31			GREATER
	(1 DAY OR		AND			AND			THAN
	LESS)		30 DAYS			90 DAYS			90 DAYS			TOTAL
March 31, 2026
Fair value of securities pledged, including accrued interest receivable	$	-	$	6,444,148		$	3,662,811		$	1,204,024		$	11,310,983
Repurchase agreement liabilities associated with these securities	$	-	$	6,180,946		$	3,529,429		$	1,154,348		$	10,864,723
Net weighted average borrowing rate		-		3.79	%		3.78	%		3.82	%		3.79	%
December 31, 2025
Fair value of securities pledged, including accrued interest receivable	$	-	$	6,821,306		$	3,445,678		$	284,296		$	10,551,280
Repurchase agreement liabilities associated with these securities	$	-	$	6,544,072		$	3,297,567		$	273,827		$	10,115,466
Net weighted average borrowing rate		-		4.00	%		3.96	%		3.92	%		3.98	%

In addition, cash pledged to counterparties for repurchase agreements was approximately $82.6 million and $51.2 million as of March 31, 2026 and December 31, 2025, respectively.

If, during the term of a repurchase agreement, a lender files for bankruptcy, the Company might experience difficulty recovering its pledged assets, which could result in an unsecured claim against the lender for the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged to such lender, including the accrued interest receivable and cash posted by the Company as collateral. At March 31, 2026, the Company had an aggregate amount at risk (the difference between the amount loaned to the Company, including interest payable and securities posted by the counterparty (if any), and the fair value of securities and cash pledged (if any), including accrued interest on such securities) with all counterparties of approximately $499.9 million. The Company did not have an amount at risk with any individual counterparty that was greater than 10% of the Company’s equity at March 31, 2026 or  December 31, 2025.

Reverse Repurchase Agreements

As of  March 31, 2026 and December 31, 2025, the Company had $358.7 million and $128.6 million of reverse repurchase agreements outstanding, respectively, for which we had associated obligations to return borrowed securities at fair value of $359.2 million and $128.7 million.