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