Interest income and interest expense

3 Months Ended

Mar. 31, 2021

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:

	Three Months Ended March 31,
(In Thousands)	2021		2020
Interest income
Loans
Originated transitional loans	$	25,560	$	22,219
Originated SBC loans		12,441		15,998
Acquired loans		13,810		15,411
Acquired SBA 7(a) loans		4,926		6,202
Originated SBA 7(a) loans		3,614		6,269
Originated SBC loans, at fair value		229		317
Originated residential agency loans		37		20
Total loans (1)	$	60,617	$	66,436
Held for sale, at fair value, loans
Originated residential agency loans	$	2,121	$	1,297
Originated Freddie loans		607		271
Acquired loans		2		68
Total loans, held for sale, at fair value (1)	$	2,730	$	1,636
Paycheck Protection Program loans
Paycheck Protection Program loans	$	6,721	$	—
Paycheck Protection Program loans, at fair value		171		—
Total Paycheck Protection Program loans	$	6,892	$	—
Mortgage backed securities, at fair value	$	3,132	$	1,479
Total interest income	$	73,371	$	69,551
Interest expense
Secured borrowings	$	(17,574)	$	(12,758)
Paycheck Protection Program Liquidity Facility borrowings		(334)		—
Securitized debt obligations of consolidated VIEs		(19,093)		(19,529)
Guaranteed loan financing		(3,651)		(6,243)
Senior secured note		(3,459)		(3,472)
Convertible note		(2,188)		(2,188)
Corporate debt		(4,462)		(2,740)
Total interest expense	$	(50,761)	$	(46,930)
Net interest income before provision for loan losses	$	22,610	$	22,621
(1) Includes interest income on loans in consolidated VIEs.