Interest income and interest expense

12 Months Ended

Dec. 31, 2020

Interest income and interest expense

Interest income and interest expense

Note 15. Interest income and interest expense

Interest income expense are recorded in the 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:

	Year Ended December 31,
(In Thousands)	2020		2019		2018
Interest income
Loans
Originated Transitional loans	$	88,271	$	69,217	$	48,499
Originated SBC loans		57,134		51,617		24,948
Acquired loans		57,471		63,879		46,154
Acquired SBA 7(a) loans		18,251		20,687		32,278
Originated SBA 7(a) loans		20,434		11,409		4,428
Originated SBC loans, at fair value		1,938		1,383		3,599
Originated Residential Agency loans		149		75		51
Total loans (1)	$	243,648	$	218,267	$	159,957
Held for sale, at fair value, loans
Originated Residential Agency loans	$	7,532	$	4,328	$	3,747
Originated Freddie loans		1,193		1,008		1,428
Acquired loans		166		217		153
Total loans, held for sale, at fair value (1)	$	8,891	$	5,553	$	5,328
Mortgage backed securities, at fair value	$	6,097	$	6,096	$	4,214
Total interest income	$	258,636	$	229,916	$	169,499
Interest expense
Secured borrowings	$	(45,430)	$	(49,009)	$	(35,481)
Securitized debt obligations of consolidated VIEs		(78,029)		(69,152)		(36,988)
Guaranteed loan financing		(18,399)		(5,125)		(11,613)
Senior secured note		(13,870)		(13,920)		(13,702)
Convertible note		(8,752)		(8,752)		(8,748)
Corporate debt		(11,001)		(5,922)		(2,706)
Total interest expense	$	(175,481)	$	(151,880)	$	(109,238)
Net interest income before provision for loan losses	$	83,155	$	78,036	$	60,261
(1) Includes interest income on loans in consolidated VIEs.