Interest income and interest expense

12 Months Ended

Dec. 31, 2023

Interest income and interest expense

Interest income and interest expense

Note 14. Interest income and interest expense

Interest income and expense are recorded in the consolidated statements of income and classified based on the nature of the underlying asset or liability. The table below presents the components of interest income and expense.

	Year Ended December 31,
(in thousands)	2023		2022		2021
Interest income
Loans
Bridge	$	654,670	$	414,308	$	148,038
Fixed rate		50,706		54,998		63,061
Construction		93,483		28,234		—
SBA - 7(a)		88,205		43,571		37,540
PPP		10,350		54,518		79,201
Other		33,158		38,797		46,848
Total loans (1)	$	930,572	$	634,426	$	374,688
Held for sale, at fair value, loans
Fixed rate		2,279		7,581		2,556
Other		620		1,009		4,270
Total loans, held for sale (1)	$	2,899	$	8,590	$	6,826
Investments held to maturity (2)		48		4,386		—
Preferred equity investment (1)		7,854		10,445		—
MBS		4,441		5,370		13,682
Total interest income	$	945,814	$	663,217	$	395,196
Interest expense
Secured borrowings		(194,423)		(127,388)		(56,519)
PPPLF borrowings		(413)		(1,699)		(7,140)
Securitized debt obligations of consolidated VIEs		(405,013)		(185,047)		(82,249)
Guaranteed loan financing		(44,263)		(14,644)		(13,900)
Senior secured note		(17,539)		(17,503)		(15,472)
Convertible note		(5,418)		(8,752)		(8,752)
Corporate debt		(49,399)		(37,327)		(20,336)
Total interest expense	$	(716,468)	$	(392,360)	$	(204,368)
Net interest income before provision for loan losses	$	229,346	$	270,857	$	190,828
(1) Includes interest income on assets in consolidated VIEs.
(2) Investments held to maturity are included in Other assets on the consolidated balance sheets.