XML 41 R28.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2017
Segment Information |
Segment Information | Note 20 — Segment Information As a result of the Acquisition, we evaluate our results from operations from two business segments — our Structured Business and our Agency Business. See Note 1 — Description of Business for a description of each segment. The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables. Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses, management fees (through May 31, 2017 — effective date of the full internalization of our management team and termination of the existing management agreement with our Former Manager) and stock-based compensation. The Agency Business information for the three and nine months ended September 30, 2016 in the following tables includes only the operating results of the Acquisition from July 14, 2016 (Acquisition closing date) to September 30, 2016.
|  | Three Months Ended September 30, 2017 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations (1) |  | Consolidated |
Interest income |  | $ | 37,258,633 |  | $ | 4,880,943 |  | $ | — |  | $ | 42,139,576 |
Interest expense |  | 19,912,991 |  | 2,974,603 |  | 961,823 |  | 23,849,417 |
Net interest income |  | 17,345,642 |  | 1,906,340 |  | (961,823 | ) | 18,290,159 |
Other revenue: |  |  |  |  |  |  |  |  |
Gain on sales, including fee-based services, net |  | — |  | 17,126,106 |  | — |  | 17,126,106 |
Mortgage servicing rights |  | — |  | 18,897,239 |  | — |  | 18,897,239 |
Servicing revenue |  | — |  | 20,231,489 |  | — |  | 20,231,489 |
Amortization of MSRs |  | — |  | (11,711,378 | ) | — |  | (11,711,378 | )
Property operating income |  | 2,668,055 |  | — |  | — |  | 2,668,055 |
Other income, net |  | 540,241 |  | 237,415 |  | — |  | 777,656 |
Total other revenue |  | 3,208,296 |  | 44,780,871 |  | — |  | 47,989,167 |
Other expenses: |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  | 5,670,249 |  | 19,524,184 |  | — |  | 25,194,433 |
Selling and administrative |  | 3,014,038 |  | 4,592,898 |  | — |  | 7,606,936 |
Property operating expenses |  | 2,582,745 |  | — |  | — |  | 2,582,745 |
Depreciation and amortization |  | 428,562 |  | 1,400,454 |  | — |  | 1,829,016 |
Provision for loss sharing (net of recoveries) |  | — |  | (2,617,064 | ) | — |  | (2,617,064 | )
Provision for loan losses (net of recoveries) |  | 2,000,000 |  | — |  | — |  | 2,000,000 |
Total other expenses |  | 13,695,594 |  | 22,900,472 |  | — |  | 36,596,066 |
Income before income from equity affiliates and provision for income taxes |  | 6,858,344 |  | 23,786,739 |  | (961,823 | ) | 29,683,260 |
Income from equity affiliates |  | 995,312 |  | — |  | — |  | 995,312 |
Provision for income taxes |  | — |  | (6,708,000 | ) | — |  | (6,708,000 | )
Net income |  | 7,853,656 |  | 17,078,739 |  | (961,823 | ) | 23,970,572 |
Preferred stock dividends |  | 1,888,430 |  | — |  | — |  | 1,888,430 |
Net income attributable to noncontrolling interest |  | — |  | — |  | 5,661,184 |  | 5,661,184 |
Net income attributable to common stockholders |  | $ | 5,965,226 |  | $ | 17,078,739 |  | $ | (6,623,007 | ) | $ | 16,420,958 |
|  | Three Months Ended September 30, 2016 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations (1) |  | Consolidated |
Interest income |  | $ | 26,893,151 |  | $ | 2,743,076 |  | $ | — |  | $ | 29,636,227 |
Interest expense |  | 14,455,058 |  | 1,680,561 |  | 830,609 |  | 16,966,228 |
Net interest income |  | 12,438,093 |  | 1,062,515 |  | (830,609 | ) | 12,669,999 |
Other revenue: |  |  |  |  |  |  |  |  |
Gain on sales, including fee-based services, net |  | — |  | 9,693,822 |  | — |  | 9,693,822 |
Mortgage servicing rights |  | — |  | 15,968,067 |  | — |  | 15,968,067 |
Servicing revenue |  | — |  | 13,472,408 |  | — |  | 13,472,408 |
Amortization of MSRs |  | — |  | (7,586,524 | ) | — |  | (7,586,524 | )
Property operating income |  | 2,960,940 |  | — |  | — |  | 2,960,940 |
Other income, net |  | 111,036 |  | 248,510 |  | — |  | 359,546 |
Total other revenue |  | 3,071,976 |  | 31,796,283 |  | — |  | 34,868,259 |
Other expenses: |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  | 3,460,745 |  | 10,755,934 |  | — |  | 14,216,679 |
Selling and administrative |  | 2,182,406 |  | 3,720,625 |  | — |  | 5,903,031 |
Acquisition costs |  | — |  | — |  | 6,406,258 |  | 6,406,258 |
Property operating expenses |  | 2,819,004 |  | — |  | — |  | 2,819,004 |
Depreciation and amortization |  | 641,721 |  | 1,167,044 |  | — |  | 1,808,765 |
Provision for loss sharing |  | — |  | 1,316,862 |  | — |  | 1,316,862 |
Provision for loan losses (net of recoveries) |  | (54,000 | ) | — |  | — |  | (54,000 | )
Management fee - related party |  | 1,712,307 |  | 1,612,693 |  | — |  | 3,325,000 |
Total other expenses |  | 10,762,183 |  | 18,573,158 |  | 6,406,258 |  | 35,741,599 |
Income before income from equity affiliates and provision for income taxes |  | 4,747,886 |  | 14,285,640 |  | (7,236,867 | ) | 11,796,659 |
Income from equity affiliates |  | 4,929,375 |  | — |  | — |  | 4,929,375 |
Provision for income taxes |  | — |  | (300,000 | ) | — |  | (300,000 | )
Net income |  | 9,677,261 |  | 13,985,640 |  | (7,236,867 | ) | 16,426,034 |
Preferred stock dividends |  | 1,888,430 |  | — |  | — |  | 1,888,430 |
Net income attributable to noncontrolling interest |  | — |  | — |  | 3,649,432 |  | 3,649,432 |
Net income attributable to common stockholders |  | $ | 7,788,831 |  | $ | 13,985,640 |  | $ | (10,886,299 | ) | $ | 10,888,172 |
|  | Nine Months Ended September 30, 2017 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations (1) |  | Consolidated |
Interest income |  | $ | 95,684,909 |  | $ | 14,447,957 |  | $ | — |  | $ | 110,132,866 |
Interest expense |  | 51,866,274 |  | 8,945,898 |  | 2,885,469 |  | 63,697,641 |
Net interest income |  | 43,818,635 |  | 5,502,059 |  | (2,885,469 | ) | 46,435,225 |
Other revenue: |  |  |  |  |  |  |  |  |
Gain on sales, including fee-based services, net |  | — |  | 55,127,004 |  | — |  | 55,127,004 |
Mortgage servicing rights |  | — |  | 56,181,638 |  | — |  | 56,181,638 |
Servicing revenue |  | — |  | 55,350,118 |  | — |  | 55,350,118 |
Amortization of MSRs |  | — |  | (35,427,217 | ) | — |  | (35,427,217 | )
Property operating income |  | 8,754,518 |  | — |  | — |  | 8,754,518 |
Other income, net |  | 1,381,847 |  | (2,311,740 | ) | — |  | (929,893 | )
Total other revenue |  | 10,136,365 |  | 128,919,803 |  | — |  | 139,056,168 |
Other expenses: |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  | 13,569,621 |  | 53,290,960 |  | — |  | 66,860,581 |
Selling and administrative |  | 8,993,239 |  | 14,142,511 |  | — |  | 23,135,750 |
Property operating expenses |  | 7,842,571 |  | — |  | — |  | 7,842,571 |
Depreciation and amortization |  | 1,340,629 |  | 4,201,362 |  | — |  | 5,541,991 |
Impairment loss on real estate owned |  | 2,700,000 |  | — |  | — |  | 2,700,000 |
Provision for loss sharing (net of recoveries) |  | — |  | (405,494 | ) | — |  | (405,494 | )
Provision for loan losses (net of recoveries) |  | (455,653 | ) | — |  | — |  | (455,653 | )
Management fee - related party |  | 3,258,772 |  | 3,414,488 |  | — |  | 6,673,260 |
Total other expenses |  | 37,249,179 |  | 74,643,827 |  | — |  | 111,893,006 |
Income before gain on extinguishment of debt, income from equity affiliates and provision for income taxes |  | 16,705,821 |  | 59,778,035 |  | (2,885,469 | ) | 73,598,387 |
Gain on extinguishment of debt |  | 7,116,243 |  | — |  | — |  | 7,116,243 |
Income from equity affiliates |  | 1,755,145 |  | — |  | — |  | 1,755,145 |
Provision for income taxes |  | — |  | (16,244,000 | ) | — |  | (16,244,000 | )
Net income |  | 25,577,209 |  | 43,534,035 |  | (2,885,469 | ) | 66,225,775 |
Preferred stock dividends |  | 5,665,290 |  | — |  | — |  | 5,665,290 |
Net income attributable to noncontrolling interest |  | — |  | — |  | 16,596,415 |  | 16,596,415 |
Net income attributable to common stockholders |  | $ | 19,911,919 |  | $ | 43,534,035 |  | $ | (19,481,884 | ) | $ | 43,964,070 |
|  | Nine Months Ended September 30, 2016 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations (1) |  | Consolidated |
Interest income |  | $ | 80,681,114 |  | $ | 2,743,076 |  | $ | — |  | $ | 83,424,190 |
Other interest income, net |  | 2,539,274 |  | — |  | — |  | 2,539,274 |
Interest expense |  | 40,447,159 |  | 1,680,561 |  | 830,609 |  | 42,958,329 |
Net interest income |  | 42,773,229 |  | 1,062,515 |  | (830,609 | ) | 43,005,135 |
Other revenue: |  |  |  |  |  |  |  |  |
Gain on sales, including fee-based services, net |  | — |  | 9,693,822 |  | — |  | 9,693,822 |
Mortgage servicing rights |  | — |  | 15,968,067 |  | — |  | 15,968,067 |
Servicing revenue |  | — |  | 13,472,408 |  | — |  | 13,472,408 |
Amortization of MSRs |  | — |  | (7,586,524 | ) | — |  | (7,586,524 | )
Property operating income |  | 12,719,027 |  | — |  | — |  | 12,719,027 |
Other income, net |  | 415,467 |  | 248,510 |  | — |  | 663,977 |
Total other revenue |  | 13,134,494 |  | 31,796,283 |  | — |  | 44,930,777 |
Other expenses: |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  | 12,100,499 |  | 10,755,934 |  | — |  | 22,856,433 |
Selling and administrative |  | 6,557,219 |  | 3,720,625 |  | — |  | 10,277,844 |
Acquisition costs |  | — |  | — |  | 10,261,902 |  | 10,261,902 |
Property operating expenses |  | 10,991,823 |  | — |  | — |  | 10,991,823 |
Depreciation and amortization |  | 1,962,366 |  | 1,167,044 |  | — |  | 3,129,410 |
Impairment loss on real estate owned |  | 11,200,000 |  | — |  | — |  | 11,200,000 |
Provision for loss sharing |  | — |  | 1,316,862 |  | — |  | 1,316,862 |
Provision for loan losses (net of recoveries) |  | (24,995 | ) | — |  | — |  | (24,995 | )
Management fee - related party |  | 7,262,307 |  | 1,612,693 |  | — |  | 8,875,000 |
Total other expenses |  | 50,049,219 |  | 18,573,158 |  | 10,261,902 |  | 78,884,279 |
Income before gain on sale of real estate, income from equity affiliates and provision for income taxes |  | 5,858,504 |  | 14,285,640 |  | (11,092,511 | ) | 9,051,633 |
Gain on sale of real estate |  | 11,630,687 |  | — |  | — |  | 11,630,687 |
Income from equity affiliates |  | 11,193,918 |  | — |  | — |  | 11,193,918 |
Provision for income taxes |  | — |  | (300,000 | ) | — |  | (300,000 | )
Net income |  | 28,683,109 |  | 13,985,640 |  | (11,092,511 | ) | 31,576,238 |
Preferred stock dividends |  | 5,665,290 |  | — |  | — |  | 5,665,290 |
Net income attributable to noncontrolling interest |  | — |  | — |  | 3,649,432 |  | 3,649,432 |
Net income attributable to common stockholders |  | $ | 23,017,819 |  | $ | 13,985,640 |  | $ | (14,741,943 | ) | $ | 22,261,516 |
| (1) |  | Includes certain corporate expenses not allocated to the two reportable segments, such as financing costs associated with the Acquisition, as well as income allocated to the noncontrolling interest holder.
|  | September 30, 2017 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations |  | Consolidated |
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 28,874,347 |  | $ | 55,877,050 |  | $ | — |  | $ | 84,751,397 |
Restricted cash |  | 137,126,053 |  | 12,336 |  | — |  | 137,138,389 |
Loans and investments, net |  | 1,997,555,985 |  | — |  | — |  | 1,997,555,985 |
Loans held-for-sale, net |  | — |  | 333,267,976 |  | — |  | 333,267,976 |
Capitalized mortgage servicing rights, net |  | — |  | 247,875,659 |  | — |  | 247,875,659 |
Securities held to maturity |  | — |  | 18,851,089 |  | — |  | 18,851,089 |
Investments in equity affiliates |  | 31,330,740 |  | — |  | — |  | 31,330,740 |
Goodwill and other intangible assets |  | 12,500,000 |  | 110,666,816 |  | — |  | 123,166,816 |
Other assets |  | 71,864,641 |  | 12,375,170 |  | — |  | 84,239,811 |
Total assets |  | $ | 2,279,251,766 |  | $ | 778,926,096 |  | $ | — |  | $ | 3,058,177,862 |
Liabilities: |  |  |  |  |  |  |  |  |
Debt obligations |  | $ | 1,630,457,754 |  | $ | 327,987,187 |  | $ | 50,000,000 |  | $ | 2,008,444,941 |
Allowance for loss-sharing obligations |  | — |  | 30,158,464 |  | — |  | 30,158,464 |
Other liabilities |  | 122,924,302 |  | 49,852,331 |  | 1,054,615 |  | 173,831,248 |
Total liabilities |  | $ | 1,753,382,056 |  | $ | 407,997,982 |  | $ | 51,054,615 |  | $ | 2,212,434,653 |
|  | December 31, 2016 |
|  | Structured Business |  | Agency Business |  | Other / Eliminations |  | Consolidated |
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 103,156,034 |  | $ | 35,489,396 |  | $ | — |  | $ | 138,645,430 |
Restricted cash |  | 16,230,051 |  | 13,084,878 |  | — |  | 29,314,929 |
Loans and investments, net |  | 1,695,732,351 |  | — |  | — |  | 1,695,732,351 |
Loans held-for-sale, net |  | — |  | 673,367,304 |  | — |  | 673,367,304 |
Capitalized mortgage servicing rights, net |  | — |  | 227,742,986 |  | — |  | 227,742,986 |
Investments in equity affiliates |  | 33,948,853 |  | — |  | — |  | 33,948,853 |
Goodwill and other intangible assets |  | — |  | 97,489,884 |  | — |  | 97,489,884 |
Other assets |  | 63,350,947 |  | 11,193,562 |  | — |  | 74,544,509 |
Total assets |  | $ | 1,912,418,236 |  | $ | 1,058,368,010 |  | $ | — |  | $ | 2,970,786,246 |
Liabilities: |  |  |  |  |  |  |  |  |
Debt obligations |  | $ | 1,307,973,936 |  | $ | 660,144,122 |  | $ | 50,000,000 |  | $ | 2,018,118,058 |
Allowance for loss-sharing obligations |  | — |  | 32,407,554 |  | — |  | 32,407,554 |
Other liabilities |  | 133,788,359 |  | 38,216,483 |  | 1,217,864 |  | 173,222,706 |
Total liabilities |  | $ | 1,441,762,295 |  | $ | 730,768,159 |  | $ | 51,217,864 |  | $ | 2,223,748,318 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Origination Data: |  |  |  |  |  |  |  |  |
Structured Business |  |  |  |  |  |  |  |  |
New loan originations |  | $ | 473,171,000 |  | $ | 266,599,500 |  | $ | 1,057,003,885 |  | $ | 654,967,500 |
Loan payoffs / paydowns |  | 270,010,000 |  | 118,346,618 |  | 723,976,741 |  | 418,433,132 |
Agency Business |  |  |  |  |  |  |  |  |
Origination Volumes by Investor: |  |  |  |  |  |  |  |  |
Fannie Mae |  | $ | 650,373,500 |  | $ | 668,644,832 |  | $ | 2,216,819,525 |  | $ | 668,644,832 |
Freddie Mac |  | 328,075,000 |  | 157,145,000 |  | 880,597,200 |  | 157,145,000 |
FHA |  | 18,273,300 |  | 24,629,823 |  | 189,086,997 |  | 24,629,823 |
CMBS/Conduit |  | — |  | — |  | 21,370,000 |  | — |
Total |  | $ | 996,721,800 |  | $ | 850,419,655 |  | $ | 3,307,873,722 |  | $ | 850,419,655 |
Total loan commitment volume |  | $ | 928,180,800 |  | $ | 714,820,818 |  | $ | 3,181,367,322 |  | $ | 714,820,818 |
Loan Sales Data: |  |  |  |  |  |  |  |  |
Agency Business |  |  |  |  |  |  |  |  |
Fannie Mae |  | $ | 665,959,500 |  | $ | 430,371,100 |  | $ | 2,569,821,000 |  | $ | 430,371,100 |
Freddie Mac |  | 342,629,800 |  | 104,448,000 |  | 862,376,636 |  | 104,448,000 |
FHA |  | 43,484,109 |  | 17,015,115 |  | 167,708,801 |  | 17,015,115 |
CMBS/Conduit |  | — |  | — |  | 21,370,000 |  | — |
Total |  | $ | 1,052,073,409 |  | $ | 551,834,215 | * | $ | 3,621,276,437 |  | $ | 551,834,215 | *
Sales margin (fee-based services as a % of loan sales) |  | 1.63 | % | 1.76 | % | 1.52 | % | 1.76 | %
MSR rate (MSR income as a % of loan commitments) |  | 2.04 | % | 2.23 | % | 1.77 | % | 2.23 | %
* Loan sales were $970.0 million for the three and nine months ended September 30, 2016, including loans that were acquired as part of the Acquisition.
|  | September 30, 2017 |
Key Servicing Metrics for Agency Business: |  | UPB of Servicing Portfolio |  | Wtd. Avg. Servicing Fee Rate (basis points) |  | Wtd. Avg. Life of Servicing Portfolio (in years) |
Fannie Mae |  | $ | 12,331,135,405 |  | 53.7 |  | 7.2 |
Freddie Mac |  | 2,732,536,579 |  | 28.6 |  | 10.9 |
FHA |  | 537,553,532 |  | 16.5 |  | 20.0 |
Total |  | $ | 15,601,225,516 |  | 48.0 |  | 8.3 |
|  | December 31, 2016 |
Fannie Mae |  | $ | 11,181,152,400 |  | 53.4 |  | 6.6 |
Freddie Mac |  | 1,953,244,541 |  | 22.3 |  | 10.5 |
FHA |  | 420,688,577 |  | 14.4 |  | 19.2 |
Total |  | $ | 13,555,085,518 |  | 47.8 |  | 7.6 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration