Interest income and interest expense

3 Months Ended

Mar. 31, 2020

Interest income and interest expense

Interest income and interest expense

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 March 31,
(In Thousands)	2020		2019
Interest income
Loans
Acquired SBA 7(a) loans	$	6,202	$	7,181
Acquired loans		15,411		10,254
Originated Transitional loans		22,219		14,185
Originated SBC loans, at fair value		317		366
Originated SBC loans		15,998		12,282
Originated SBA 7(a) loans		6,269		1,928
Originated Residential Agency loans		20		6
Total loans (1)	$	66,436	$	46,202
Held for sale, at fair value, loans
Originated Residential Agency loans	$	1,297	$	776
Originated Freddie loans		271		257
Acquired loans		68		36
Total loans, held for sale, at fair value (1)	$	1,636	$	1,069
Mortgage backed securities, at fair value		1,479		1,482
Total interest income	$	69,551	$	48,753
Interest expense
Secured borrowings	$	(12,758)	$	(9,909)
Securitized debt obligations of consolidated VIEs		(19,529)		(16,501)
Guaranteed loan financing		(6,243)		(2,710)
Senior secured note		(3,472)		(3,484)
Convertible note		(2,188)		(2,188)
Corporate debt		(2,740)		(983)
Total interest expense	$	(46,930)	$	(35,775)
Net interest income before provision for loan losses	$	22,621	$	12,978
(1) Includes interest income on loans in consolidated VIEs.