Interest income and interest expense

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
(In Thousands)	2020		2019		2020		2019
Interest income
Loans
Originated Transitional loans	$	22,368	$	17,056	$	44,587	$	31,241
Originated SBC loans		13,930		11,898		29,928		24,180
Acquired loans		13,924		17,789		29,335		28,042
Acquired SBA 7(a) loans		3,949		4,288		10,151		11,469
Originated SBA 7(a) loans		4,665		2,836		10,934		4,764
Originated SBC loans, at fair value		515		354		832		721
Originated Residential Agency loans		28		16		49		22
Total loans (1)	$	59,379	$	54,237	$	125,816	$	100,439
Held for sale, at fair value, loans
Originated Residential Agency loans	$	1,901	$	1,047	$	3,198	$	1,823
Originated Freddie loans		419		198		690		455
Acquired loans		58		37		126		73
Total loans, held for sale, at fair value (1)	$	2,378	$	1,282	$	4,014	$	2,351
Mortgage backed securities, at fair value		1,454		1,515		2,932		2,997
Total interest income	$	63,211	$	57,034	$	132,762	$	105,787
Interest expense
Secured borrowings	$	(13,539)	$	(11,540)	$	(26,297)	$	(21,449)
Securitized debt obligations of consolidated VIEs		(17,317)		(17,038)		(36,846)		(33,539)
Guaranteed loan financing		(4,153)		(518)		(10,396)		(3,228)
Senior secured note		(3,469)		(3,481)		(6,941)		(6,965)
Convertible note		(2,188)		(2,188)		(4,376)		(4,376)
Corporate debt		(2,742)		(988)		(5,482)		(1,972)
Total interest expense	$	(43,408)	$	(35,753)	$	(90,338)	$	(71,529)
Net interest income before provision for loan losses	$	19,803	$	21,281	$	42,424	$	34,258
(1) Includes interest income on loans in consolidated VIEs.