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Item 1. Financial Statements

2025-11-05 compared with 2025-08-08 · 115 added, 109 removed, 665 unchanged (25% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

$ in thousands, except share amounts June 30, 2025 December 31, 2024

$ in thousands, except share amounts September 30, 2025 December 31, 2024

Mortgage-backed securities, at fair value (including pledged securities of $ 5,384,388 and $ 5,129,486 , respectively;

12 unchanged sentences

Dividends payable 24,121 24,692

Investment related payable 427 —

Accrued interest payable 9,114 32,711

19 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands, except share data 2025 2024 2025 2024

20 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands 2025 2024 2025 2024

10 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the three months ended March 31, 2025 and June 30, 2025

For the three months ended March 31, 2025;

June 30, 2025 and September 30, 2025

Capital Accumulated

26 unchanged sentences

Balance as of June 30, 2025 7,019,710 169,760 66,307,379 663 4,166,345 — ( 3,627,392 ) 709,376

Net income (loss) — — — — — — 53,471 53,471

Proceeds from issuance of common stock, net of offering costs — — 4,638,385 46 36,060 — — 36,106

Stock awards — — ( 193 ) — — — — —

Repurchase and retirement of preferred stock ( 89,223 ) ( 2,158 ) — — — — ( 2 ) ( 2,160 )

Common stock dividends — — — — — — ( 24,121 ) ( 24,121 )

Preferred stock dividends — — — — — — ( 3,261 ) ( 3,261 )

Amortization of equity-based compensation — — — — 170 — — 170

Balance as of September 30, 2025 6,930,487 167,602 70,945,571 709 4,202,575 — ( 3,601,305 ) 769,581

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the three months ended March 31, 2024 and June 30, 2024

For the three months ended March 31, 2024;

June 30, 2024 and September 30, 2024

Capital Accumulated

27 unchanged sentences

Balance as of June 30, 2024 4,247,989 102,678 7,344,030 177,603 50,637,604 506 4,030,745 648 ( 3,552,964 ) 759,216

Net income (loss) — — — — — — — — 40,720 40,720

Other comprehensive income (loss) — — — — — — — ( 287 ) — ( 287 )

Proceeds from issuance of common stock, net of offering costs — — — — 10,084,138 101 88,445 — — 88,546

Repurchase and retirement of preferred stock — — ( 66,507 ) ( 1,608 ) — — — — 25 ( 1,583 )

Stock awards — — — — 8,545 — — — — —

Common stock dividends — — — — — — — — ( 24,292 ) ( 24,292 )

Preferred stock dividends — — — — — — — — ( 5,474 ) ( 5,474 )

Amortization of equity-based compensation — — — — — — 157 — — 157

Balance as of September 30, 2024 4,247,989 102,678 7,277,523 175,995 60,730,287 607 4,119,347 361 ( 3,541,985 ) 857,003

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

$ in thousands 2025 2024

28 unchanged sentences

Net change in due from counterparties and collateral held payable on repurchase agreements 797 ( 2,139 )

Payments of deferred costs ( 47 ) ( 108 )

Payments of dividends ( 79,556 ) ( 75,736 )

9 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

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INVESCO MORTGAGE CAPITAL INC.

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(the “Company” or “we”) is a Maryland corporation primarily focused on investing in, financing and managing mortgage-backed securities (“MBS”) and other mortgage-related assets.

As of June 30, 2025, we were invested in:

As of September 30, 2025, we were invested in:

• residential mortgage-backed securities (“RMBS”) that are guaranteed by a U.S.

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There have been no changes to our accounting policies included in Note 2 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2024.

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Note 3 – Mortgage-Backed Securities

The following tables summarize our MBS portfolio by asset type as of June 30, 2025 and December 31, 2024.

As of June 30, 2025

The following tables summarize our MBS portfolio by asset type as of September 30, 2025 and December 31, 2024.

As of September 30, 2025

$ in thousands Principal/ Notional

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Total 6,117,977 ( 479,768 ) 5,638,209 111,029 5,749,238 5.42 %

(1) Period-end weighted average yield is based on amortized cost as of June 30, 2025 and incorporates future prepayment and loss assumptions when appropriate.

(1) Period-end weighted average yield is based on amortized cost as of September 30, 2025 and incorporates future prepayment and loss assumptions when appropriate.

Total represents period-end weighted average yield of all mortgage-backed securities.

21 unchanged sentences

(4) Of the total discount in non-Agency RMBS, $ 2.1 million is non-accretable calculated using the principal/notional balance and based on estimated future cash flows of the securities.

(5) Non-Agency RMBS includes non-Agency IO which represent 96.7 % of principal/notional balance, 34.2 % of amortized cost and 31.0 % of fair value.

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We have elected the fair value option for all of our MBS held as of June 30, 2025.

(5) Non-Agency RMBS includes interest-only securities (“non-Agency IO”), which represent 96.7 % of principal/notional balance, 34.2 % of amortized cost and 31.0 % of fair value.

We have elected the fair value option for all of our MBS held as of September 30, 2025.

We believe the fair value option election more appropriately reflects the results of our operations because MBS fair value changes are accounted for in the same manner as fair value changes in economic hedging instruments.

8 unchanged sentences

Total 14,950 5,430,558 5,445,508

The components of the carrying value of our MBS portfolio as of June 30, 2025 and December 31, 2024 are presented below.

Accrued interest receivable on our MBS portfolio, which is recorded within investment related receivable on our condensed consolidated balance sheets, was $ 23.5 million as of June 30, 2025 (December 31, 2024:

The components of the carrying value of our MBS portfolio as of September 30, 2025 and December 31, 2024 are presented below.

Accrued interest receivable on our MBS portfolio, which is recorded within investment related receivable on our condensed consolidated balance sheets, was $ 25.6 million as of September 30, 2025 (December 31, 2024:

$ 24.9 million).

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

$ in thousands MBS Interest-Only Securities Total MBS Interest-Only Securities Total

8 unchanged sentences

Fair value 5,678,278 70,960 5,749,238 5,372,495 73,013 5,445,508

(1) Gross unrealized gains and losses includes gains (losses) recognized in net income for securities accounted for under the fair value option as well as gains (losses) for available-for-sale securities which are recognized as adjustments to other comprehensive income.

(1) Gross unrealized gains and losses includes gains (losses) recognized in net income for securities accounted for under the fair value option as well as, solely with respect to December 31, 2024 , gains (losses) for available-for-sale securities which were recognized as adjustments to other comprehensive income.

Realization occurs upon sale or settlement of such securities.

Further detail on the components of our total gains (losses) on investments, net for the three and six months ended June 30, 2025 and 2024 is provided below in this Note 3.

The following table summarizes our MBS portfolio according to estimated weighted average life classifications as of June 30, 2025 and December 31, 2024 .

$ in thousands June 30, 2025 December 31, 2024

Further detail on the components of our total gains (losses) on investments, net for the three and nine months ended September 30, 2025 and 2024 is provided below in this Note 3.

The following table summarizes our MBS portfolio according to estimated weighted average life classifications as of September 30, 2025 and December 31, 2024 .

$ in thousands September 30, 2025 December 31, 2024

Greater than one year and less than five years 1,570,227 10,045

1 unchanged sentence

Total 5,749,238 5,445,508

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The following tables present the estimated fair value and gross unrealized losses of our MBS by length of time that such securities have been in a continuous unrealized loss position as of June 30, 2025 and December 31, 2024.

As of June 30, 2025

As of September 30, 2025

Less than 12 Months 12 Months or More Total

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We were required to evaluate our available-for-sale MBS for credit losses.

During the three and six months ended June 30, 2025, we sold our remaining available-for-sale MBS for cash proceeds of $ 4.9 million and $ 15.1 million, respectively, and recognized net gains upon sale of $ 518,000 and $ 402,000 , respectively.

During the nine months ended September 30, 2025, we sold our remaining available-for-sale MBS for cash proceeds of $ 15.1 million and recognized net gains upon sale of $ 402,000 .

There were no sales of available-for-sale MBS during the three months ended September 30, 2025 or during the three and nine months ended September 30, 2024.

The following table presents a roll-forward of our allowance for credit losses.

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands 2025 2024 2025 2024

3 unchanged sentences

Ending allowance for credit losses — ( 542 ) — ( 542 )

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The following table summarizes the components of our total gain (loss) on investments, net for the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes the components of our total gain (loss) on investments, net for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands 2025 2024 2025 2024

7 unchanged sentences

Total gain (loss) on investments, net 49,540 165,168 126,430 53,803

The following tables present components of interest income recognized for the three and six months ended June 30, 2025 and 2024.

For the three months ended June 30, 2025

The following tables present components of interest income recognized for the three and nine months ended September 30, 2025 and 2024.

For the three months ended September 30, 2025

$ in thousands Coupon

4 unchanged sentences

Agency CMBS 10,251 117 10,368

Non-Agency RMBS 47 51 98

Other (inclusive of interest earned on cash balances) 165 — 165

Total interest income 73,185 ( 269 ) 72,916

For the three months ended June 30, 2024

For the three months ended September 30, 2024

$ in thousands Coupon

8 unchanged sentences

Total interest income 72,348 1,477 73,825

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For the six months ended June 30, 2025

For the nine months ended September 30, 2025

$ in thousands Coupon

8 unchanged sentences

Total interest income 217,799 ( 413 ) 217,386

For the six months ended June 30, 2024

For the nine months ended September 30, 2024

$ in thousands Coupon

14 unchanged sentences

Our repurchase agreements are subject to certain financial covenants.

We were in compliance with all of these covenants as of June 30, 2025.

The following tables summarize certain characteristics of our borrowings as of June 30, 2025 and December 31, 2024.

We were in compliance with all of these covenants as of September 30, 2025.

The following tables summarize certain characteristics of our borrowings as of September 30, 2025 and December 31, 2024.

Refer to Note 5 - "Collateral Positions" for collateral pledged and held under our repurchase agreements.

$ in thousands June 30, 2025 December 31, 2024

$ in thousands September 30, 2025 December 31, 2024

Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity

3 unchanged sentences

Total Borrowings 5,150,081 4.35 % 21 4,893,958 4.80 % 29

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Note 5 - Collateral Positions

The following table summarizes the fair value of collateral that we pledged and held under our repurchase agreements and derivative instruments as of June 30, 2025 and December 31, 2024.

The following table summarizes the fair value of collateral that we pledged and held under our repurchase agreements and derivative instruments as of September 30, 2025 and December 31, 2024.

Refer to Note 2 - “Summary of Significant Accounting Policies - Fair Value Measurements” of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 for a description of how we determine fair value.

4 unchanged sentences

Non-cash collateral held is only recognized if the counterparty defaults or if we sell the pledged collateral.

As of June 30, 2025 and December 31, 2024, we did not recognize any non-cash collateral held on our condensed consolidated balance sheets.

As of September 30, 2025 and December 31, 2024, we did not recognize any non-cash collateral held on our condensed consolidated balance sheets.

$ in thousands As of

Collateral Pledged June 30, 2025 December 31, 2024

Collateral Pledged September 30, 2025 December 31, 2024

Repurchase Agreements:

9 unchanged sentences

Total Collateral Pledged 5,506,569 5,267,544

Collateral Held June 30, 2025 December 31, 2024

Collateral Held September 30, 2025 December 31, 2024

Repurchase Agreements:

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We intend to maintain a level of liquidity that will enable us to meet any reasonably anticipated margin calls.

The ratio of our total repurchase agreements collateral pledged to our total repurchase agreements outstanding was 105 % as of June 30, 2025 (December 31, 2024:

The ratio of our total repurchase agreements collateral pledged to our total repurchase agreements outstanding was 105 % as of September 30, 2025 (December 31, 2024:

105 %) based on the fair value of the securities as reported in our condensed consolidated balance sheets.

Interest Rate Swaps

As of June 30, 2025 and December 31, 2024, all of our interest rate swaps were centrally cleared by a registered clearing organization such as the Chicago Mercantile Exchange (“CME”) through a Futures Commission Merchant (“FCM”).

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As of September 30, 2025 and December 31, 2024, all of our interest rate swaps were centrally cleared by the Chicago Mercantile Exchange (“CME”), a registered clearing organization, through a Futures Commission Merchant (“FCM”).

required to pledge initial margin and daily variation margin for our centrally cleared interest rate swaps that is based on the fair value of our contracts as determined by our FCM.

11 unchanged sentences

$ in thousands Notional Amount as of December 31, 2024 Additions Settlement,

or Exercise Notional Amount as of June 30, 2025

or Exercise Notional Amount as of September 30, 2025

Interest Rate Swaps 3,265,000 745,000 ( 630,000 ) 3,380,000

9 unchanged sentences

Under the terms of our interest rate swap contracts, we make fixed-rate payments to a counterparty in exchange for the receipt of floating-rate amounts over the life of the agreements without exchange of the underlying notional amount.

As of June 30, 2025 and December 31, 2024, we had interest rate swaps whereby we pay interest at a fixed rate and receive floating interest based on the secured overnight financing rate (“SOFR”) with the following maturities outstand ing .

$ in thousands As of June 30, 2025

As of September 30, 2025 and December 31, 2024, we had interest rate swaps whereby we pay fixed interest rates and receive floating interest rates based on the secured overnight financing rate (“SOFR”) with the following maturities outstand ing .

$ in thousands As of September 30, 2025

Maturities Notional

6 unchanged sentences

Total 3,380,000 1.08 % 4.24 % 5.9

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$ in thousands As of December 31, 2024

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We use futures contracts to help mitigate the potential impact of changes in interest rates on our performance.

The table below presents certain details of our futures contracts as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

The table below presents certain details of our futures contracts as of September 30, 2025 and December 31, 2024.

September 30, 2025 December 31, 2024

$ in thousands Notional Amount - Short Notional Amount - Short

7 unchanged sentences

During the second quarter of 2025, we used short positions in TBAs to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

The tables below presents certain characteristics of our TBAs accounted for as derivatives as of December 31, 2024.

We did not have any TBAs outstanding as of June 30, 2025.

The table below presents certain characteristics of our TBAs accounted for as derivatives as of December 31, 2024.

We did not have any TBAs outstanding as of September 30, 2025.

$ in thousands As of December 31, 2024

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(1) Derivative assets and derivative liabilities related to TBAs are presented gross on the condensed consolidated balance sheets.

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Tabular Disclosure of the Effect of Derivative Instruments on the Balance Sheets

The table below presents the fair value of our derivative financial instruments, as well as their classification on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

The table below presents the fair value of our derivative financial instruments, as well as their classification on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

$ in thousands

Derivative Assets Derivative Liabilities

September 30,

2025 December 31,

2024 June 30,

2024 September 30,

2025 December 31,

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Total Derivative Assets 738 5,033 Total Derivative Liabilities 680 627

The following tables summarize the effect of interest rate swaps, futures contracts and TBAs reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024.

$ in thousands

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

not designated as

2 unchanged sentences

Futures Contracts ( 13,742 ) — 5,119 ( 8,623 )

TBAs ( 1,458 ) — 218 ( 1,240 )

Total ( 49,189 ) 29,138 10,833 ( 9,218 )

$ in thousands

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

not designated as

1 unchanged sentence

Interest Rate Swaps ( 160,472 ) 40,883 517 ( 119,072 )

Futures Contracts ( 12,419 ) — 2,527 ( 9,892 )

TBAs 94 — 1,525 1,619

1 unchanged sentence

$ in thousands

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

not designated as

5 unchanged sentences

$ in thousands

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

not designated as

1 unchanged sentence

Interest Rate Swaps ( 134,661 ) 129,441 8,569 3,349

Futures Contracts ( 12,419 ) — 2,527 ( 9,892 )

TBAs 621 — — 621

Total ( 146,459 ) 129,441 11,096 ( 5,922 )

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Note 7 – Offsetting Assets and Liabilities

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Assets and liabilities subject to such arrangements are presented on a gross basis on the condensed consolidated balance sheets.

The following tables present information about the assets and liabilities that are subject to master netting arrangements (or similar agreements) and can potentially be offset on our condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

The daily variation margin payments for centrally cleared interest rate swaps and futures contracts are characterized as settlement of the derivative itself rather than collateral.

Our derivative liabilities of $ 6.4 million and $ 4.4 million related to centrally cleared interest rate swaps and futures contracts, respectively, as of June 30, 2025 (December 31, 2024:

Our derivative liability of $ 680,000 related to centrally cleared interest rate swaps and derivative asset of $ 738,000 related to futures contracts as of September 30, 2025 (December 31, 2024:

assets of $ 1.5 million and $ 3.5 million related to centrally cleared interest rate swaps and futures contracts, respectively) are not included in the table below as a result of this characterization of daily variation margin.

As of June 30, 2025

As of September 30, 2025

Gross Amounts Not Offset with Financial Assets (Liabilities) in the Balance Sheets

26 unchanged sentences

Total Liabilities ( 4,894,585 ) — ( 4,894,585 ) 4,893,958 580 ( 47 )

(1) The fair value of securities pledged against our borrowings under repurchase agreements was $ 4.9 billion as of June 30, 2025 (December 31, 2024:

(1) The fair value of securities pledged against our borrowings under repurchase agreements was $ 5.4 billion as of September 30, 2025 (December 31, 2024:

$ 5.1 billion).

We held $ 6.2 million of cash collateral under repurchase agreements as of June 30, 2025 (December 31, 2024:

We held $ 797,000 of cash collateral under repurchase agreements as of September 30, 2025 (December 31, 2024:

Gross amounts not offset are limited to the net amount of repurchase agreement liabilities presented sufficient to reduce the net amount to zero for each counterparty.

1 unchanged sentence

(2) Amounts represent derivative assets and derivative liabilities which could potentially be offset against other derivative assets, derivative liabilities and cash collateral pledged or received.

(3) Cash collateral pledged by us on our derivatives was $ 131.1 million as of June 30, 2025 (December 31, 2024:

(3) Cash collateral pledged by us on our derivatives was $ 122.2 million as of September 30, 2025 (December 31, 2024:

$ 138.1 million) of which $ 122.2 million relates to initial margin pledged on centrally cleared interest rate swaps and futures contracts (December 31, 2024:

1 unchanged sentence

Centrally cleared interest rate swaps and futures contracts are excluded from the tables above.

We held no cash collateral on our derivatives as of June 30, 2025 or December 31, 2024.

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We held no cash collateral on our derivatives as of September 30, 2025 or December 31, 2024.

Note 8 – Fair Value of Financial Instruments

8 unchanged sentences

The following tables present our assets and liabilities measured at fair value on a recurring basis.

As of June 30, 2025

As of September 30, 2025

Fair Value Measurements Using:

2 unchanged sentences

— 5,749,238 — 5,749,238

Derivative assets (2)

Total assets 738 5,749,238 — 5,749,976

Derivative liabilities (2)

4,381 6,394 — 10,775

Total liabilities — 680 — 680

11 unchanged sentences

(2) Derivative assets and derivative liabilities include futures contracts as Level 1 measurements and interest rate swaps and TBAs as Level 2 measurements.

The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

$ in thousands Carrying

7 unchanged sentences

This method discounts future estimated cash flows using rates we determined best reflect current market interest rates that would be offered for repurchase agreements with similar characteristics and credit quality.

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Note 9 – Related Party Transactions

4 unchanged sentences

Our Manager is not obligated to dedicate any of its employees exclusively to us, nor is our Manager obligated to dedicate any specific portion of time to our business.

The costs of support personnel provided by our Manager for the three and six months ended June 30, 2025 reimbursed or reimbursable by us were $ 257,000 and $ 550,000 , respectively (June 30, 2024:

$ 339,000 and $ 570,000 , respectively).

The costs of support personnel provided by our Manager for the three and nine months ended September 30, 2025 reimbursed or reimbursable by us were $ 309,000 and $ 860,000 , respectively (three and nine months ended September 30, 2024:

$ 494,000 and $ 1.1 million, respectively).

When cash collateral is received from counterparties under repurchase agreement borrowings, it is generally invested in a money market fund for which our Manager serves as the investment adviser.

5 unchanged sentences

GAAP and certain non-cash items upon approval by a majority of our independent directors.

During the periods presented in these condensed consolidated financial statements, we did not pay any management fees on our investments in unconsolidated ventures that are managed by an affiliate of our Manager.

During the periods presented in these condensed consolidated financial statements, we did not pay any management fees on our investment in an unconsolidated venture that was managed by an affiliate of our Manager.

Expense Reimbursement

1 unchanged sentence

Our reimbursement obligation is not subject to any dollar limitation.

The following table summarizes the costs incurred on our behalf by our Manager during the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes the costs incurred on our behalf by our Manager during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands 2025 2024 2025 2024

Incurred costs, prepaid or expensed 2,313 2,420 5,004 5,308

Incurred costs, charged or expected to be charged against equity as a cost of raising capital 165 108 165 108

Total incurred costs, originally paid by our Manager 2,478 2,528 5,169 5,416

2 unchanged sentences

In May 2022, our board of directors approved a share repurchase program for our Series B and Series C Preferred Stock.

During the three and six months ended June 30, 2025, we repurchased and retired 96,803 and 186,949 shares of Series C Preferred Stock, respectively.

During the three and six months ended June 30, 2024, we repurchased and retired 44,661 and 138,008 shares of Series B Preferred Stock, respectively, and 105,492 and 201,409 shares of Series C Preferred Stock, respectively.

During the three and nine months ended September 30, 2025, we repurchased and retired 89,223 and 276,172 shares of Series C Preferred Stock, respectively.

During the three and nine months ended September 30, 2024, we repurchased and retired no shares and 138,008 shares of Series B Preferred Stock, respectively, and 66,507 and 267,916 shares of Series C Preferred Stock, respectively.

We redeemed all outstanding shares of our Series B Preferred Stock in December 2024.

As of June 30, 2025, we had authority to repurchase 519,710 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

As of September 30, 2025, we had authority to repurchase 430,487 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

Holders of our Series C Preferred Stock are entitled to receive dividends at an annual rate of 7.50 % of the liquidation preference of $ 25.00 per share or $ 1.875 per share per annum until September 27, 2027.

3 unchanged sentences

Shares of Series C Preferred Stock are not redeemable, convertible into or exchangeable for any other property or any other securities of the Company before this time, except under circumstances intended to preserve our qualification as a REIT or upon the occurrence of a change in control.

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As of June 30, 2025, we had 6,600,754 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

As of September 30, 2025, we had 20,388,007 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

These shares are registered with the SEC under our shelf registration statement (as amended and/or supplemented).

The table below shows sales of our common stock under equity distribution agreements during the three and six months ended June 30, 2025 and 2024.

Three Months Ended June 30, Six Months Ended June 30,

The table below shows sales of our common stock under equity distribution agreements during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

Shares in ones, $ in thousands 2025 2024 2025 2024

Shares sold 4,638,385 10,084,138 9,133,192 12,211,131

Cash proceeds, net of fees paid to placement agents 2,163 16,059 38,231 19,378

Fees paid to placement agents 458 1,123 942 1,369

During the three and six months ended June 30, 2025 and 2024, we did not repurchase any shares of our common stock.

As of June 30, 2025, we had authority to repurchase 1,816,359 shares of our common stock through our common stock share repurchase program.

Cash proceeds, net of fees paid to placement agents 36,145 88,684 74,376 108,062

During the three and nine months ended September 30, 2025 and 2024, we did not repurchase any shares of our common stock.

As of September 30, 2025, we had authority to repurchase 1,816,359 shares of our common stock through our common stock share repurchase program.

Accumulated Other Comprehensive Income

1 unchanged sentence

Gains and losses on MBS that are accounted for under the fair value option are recorded on our condensed consolidated statements of operations within “Gain (loss) on investments, net”.

The table below summarizes the dividends we declared during the six months ended June 30, 2025 and 2024.

The table below summarizes the dividends we declared during the nine months ended September 30, 2025 and 2024.

$ in thousands, except per share amounts Dividends Declared

Series B Preferred Stock Per Share In Aggregate Date of Payment

August 7, 2024 0.4844 2,058 September 27, 2024

May 7, 2024 0.4844 2,058 June 27, 2024

2 unchanged sentences

Series C Preferred Stock Per Share In Aggregate Date of Payment

August 7, 2025 0.46875 3,261 September 29, 2025

May 6, 2025 0.46875 3,297 June 27, 2025

February 19, 2025 0.46875 3,341 March 27, 2025

August 7, 2024 0.46875 3,416 September 27, 2024

May 7, 2024 0.46875 3,450 June 27, 2024

2 unchanged sentences

Common Stock Per Share In Aggregate Date of Payment

September 24, 2025 0.34 24,121 October 24, 2025

June 24, 2025 0.34 22,545 July 25, 2025

March 25, 2025 0.34 22,420 April 25, 2025

September 24, 2024 0.40 24,292 October 25, 2024

June 24, 2024 0.40 20,255 July 26, 2024

March 26, 2024 0.40 19,530 April 26, 2024

Table of Content s

Note 11 – Earnings (Loss) per Common Share

Earnings (loss) per share for the three and six months ended June 30, 2025 and 2024 is computed as shown in the table below.

Three Months Ended June 30, Six Months Ended June 30,

Earnings (loss) per share for the three and nine months ended September 30, 2025 and 2024 is computed as shown in the table below.

Three Months Ended September 30, Nine Months Ended September 30,

In thousands, except per share amounts 2025 2024 2025 2024

12 unchanged sentences

Diluted 0.74 0.63 0.61 0.78

The following potential weighted average common shares were excluded from diluted earnings per share for the three and six months ended June 30, 2025 as the effect would be antidilutive:

48 and 1,069 for restricted stock awards, respectively (three months ended June 30, 2024:

822 for restricted stock awards).

There were no antidilutive shares that were excluded from the calculation of diluted earnings per share during the three and nine months ended September 30, 2025 and 2024.

Note 12 – Commitments and Contingencies

Commitments and contingencies may arise in the ordinary course of business.

As of June 30, 2025, we were not aware of any reported or unreported contingencies.

As of September 30, 2025, we were not aware of any reported or unreported contingencies.

Note 13 – Subsequent Events

On August 7, 2025, we declared a Series C Preferred Stock dividend of $ 0.46875 per share payable on September 29, 2025 to our stockholders of record as of September 5, 2025.

Table of Content s

On November 4, 2025, we declared a Series C Preferred Stock dividend of $ 0.46875 per share payable on December 29, 2025 to our stockholders of record as of December 5, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements