13. INTANGIBLE ASSETS Intangible assets, net Finite life intangible assets are amortized over their expected useful lives. As part of the Company’s management internalization transaction, which closed on June 30, 2020, the Company recognized an intangible asset for the acquired assembled workforce of approximately $41.2 million based on the replacement cost of the employee base acquired by the Company. The following table presents the activity of finite lived intangible assets for the year ended December 31, 2023. Intangible Assets, net (dollars in thousands) Beginning balance January 1, 2023 $ 16,679 Impairment (1,626) Less: amortization expense (2,947) Ending balance December 31, 2023 $ 12,106 14. SECURED FINANCING Reverse Repurchase and Repurchase Agreements – The Company finances a significant portion of its assets with repurchase agreements. At the inception of each transaction, the Company assessed each of the specified criteria in ASC 860, Transfers and Servicing, and has determined that each of the financing agreements should be treated as a secured financing. The Company enters into reverse repurchase agreements to earn a yield on excess cash balances. To mitigate credit exposure, the Company monitors the market value of these securities and delivers or obtains additional collateral based on changes in market value of these securities. Generally, the Company receives or posts collateral with a fair value approximately equal to or greater than the value of the secured financing. Reverse repurchase agreements and repurchase agreements with the same counterparty and the same maturity are presented net in the Consolidated Statements of Financial Condition when the terms of the agreements meet the criteria to permit netting. The Company reports cash flows on repurchase agreements as financing activities and cash flows on reverse repurchase agreements as investing activities in the Consolidated Statements of Cash Flows. The Company had outstanding $62.2 billion and $59.5 billion of repurchase agreements with weighted average remaining maturities of 44 days and 27 days and weighted average rates of 5.70% and 4.29% at December 31, 2023 and 2022, respectively. In connection with its residential mortgage loans, the Company has select arrangements with counterparties to enter into repurchase agreements for $2.4 billion with remaining capacity of $1.5 billion at December 31, 2023. At December 31, 2023 and 2022, the repurchase agreements had the following remaining maturities and collateral types: December 31, 2023 Agency MortgageBacked Securities CRTs Non-Agency MortgageBacked Securities Residential Mortgage Loans Commercial MortgageBacked Securities Total Repurchase Agreements (dollars in thousands) 1 day $ — $ — $ — $ — $ — $ — 2 to 29 days 33,492,952 555,568 840,400 — 191,276 35,080,196 30 to 59 days 18,090,265 — 528,341 — — 18,618,606 60 to 89 days 6,479,206 139,952 579,611 — — 7,198,769 90 to 119 days — — 39,714 207,592 — 247,306 Over 119 days (1) 2,511,003 — 169,697 644,259 — 3,324,959 Total $ 60,573,426 $ 695,520 $ 2,157,763 $ 851,851 $ 191,276 $ 64,469,836 Amounts offset in accordance with netting arrangements $ (2,268,293) Net amounts of Repurchase agreements as presented in the Consolidated Statements of Financial Condition $ 62,201,543 ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES Financial Statements F-28
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