Note 15 – Interest income and interest expense

Interest income and interest expense are recorded in the unaudited interim consolidated statements of income and classified based on the nature of the underlying asset or liability.

The following table presents the components of interest income and expense:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2019		2018		2019		2018
Interest income
Loans
Acquired SBA 7(a) loans	$	4,609	$	8,692	$	16,078	$	24,532
Acquired loans		16,247		11,799		44,289		33,966
Originated Transitional loans		20,157		13,306		51,398		32,627
Originated SBC loans, at fair value		331		767		1,052		3,292
Originated SBC loans		10,499		6,374		34,679		18,946
Originated SBA 7(a) loans		2,626		1,006		7,390		2,879
Acquired Transitional loans		2,059		—		2,059		—
Originated Residential Agency loans		30		15		52		39
Total loans (1)	$	56,558	$	41,959	$	156,997	$	116,281
Held for sale, at fair value, loans
Originated Residential Agency loans	$	1,224	$	956	$	3,047	$	2,820
Originated Freddie loans		351		303		806		1,246
Acquired loans		50		28		123		118
Total loans, held for sale, at fair value	$	1,625	$	1,287	$	3,976	$	4,184
Mortgage backed securities, at fair value		1,540		1,041		4,537		2,830
Total interest income	$	59,723	$	44,287	$	165,510	$	123,295
Interest expense
Secured borrowings	$	(13,360)	$	(9,269)	$	(34,809)	$	(25,239)
Securitized debt obligations of consolidated VIEs		(17,978)		(9,988)		(51,516)		(25,478)
Guaranteed loan financing		(645)		(3,011)		(3,873)		(8,781)
Senior secured note		(3,478)		(3,489)		(10,444)		(10,215)
Convertible note		(2,188)		(2,187)		(6,564)		(6,560)
Corporate debt		(1,741)		(981)		(3,713)		(1,723)
Total interest expense	$	(39,390)	$	(28,925)	$	(110,919)	$	(77,996)
Net interest income before provision for loan losses	$	20,333	$	15,362	$	54,591	$	45,299
(1) Includes interest income on loans in consolidated VIEs.