Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

The following tables present financial information by segment for the three and six months ended June 30, 2014 and 2013.

Business Segment Financial Information


	Three Months Ended June 30, 2014
(In Thousands)	Residential Mortgage Banking		Residential Investments		Commercial Mortgage Banking and Investments		Corporate/ Other		Total
Interest income	$	12,438	$	27,924	$	11,217	$	6,414	$	57,993
Interest expense		(2,161)		(3,116)		(4,404)		(11,470)		(21,151)

Net interest income (loss)		10,277		24,808		6,813		(5,056)		36,842
Reversal of provision (provision) for loan losses		-		-		(289)		604		315
Mortgage banking activities, net		1,329		-		4,981		-		6,310
MSR income (loss), net		-		(1,777)		-		-		(1,777)
Other market valuation adjustments, net		13		(3,788)		-		(346)		(4,121)
Realized gains, net		-		992		-		71		1,063
Operating expenses		(9,501)		(770)		(2,180)		(9,831)		(22,282)
(Provision for) benefit from income taxes		259		149		(750)		9		(333)

Segment Contribution	$	2,377	$	19,614	$	8,575	$	(14,549)



Net Income									$	16,017


Non-cash amortization income (expense)		(36)		10,586		(215)		(2,073)		8,262


	Three Months Ended June 30, 2013
(In Thousands)	Residential Mortgage Banking		Residential Investments		Commercial Mortgage Banking and Investments		Corporate/ Other		Total
Interest income	$	15,158	$	24,015	$	9,623	$	8,923	$	57,719
Interest expense		(3,020)		(2,553)		(2,560)		(13,283)		(21,416)

Net interest income (loss)		12,138		21,462		7,063		(4,360)		36,303
Reversal of provision (provision) for loan losses		-		-		(891)		4,163		3,272
Mortgage banking activities, net		42,290		-		6,433		-		48,723
MSR income (loss), net		-		10,547		-		-		10,547
Other market valuation adjustments, net		38		(5,738)		-		(558)		(6,258)
Realized gains, net		-		526		-		30		556
Operating expenses		(6,053)		(1,956)		(2,654)		(13,767)		(24,430)
(Provision for) benefit from income taxes		(2,409)		(1,236)		(495)		1,000		(3,140)

Segment Contribution	$	46,004	$	23,605	$	9,456	$	(13,492)



Net Income									$	65,573


Non-cash amortization income (expense)		(13)		8,066		(224)		(2,084)		5,745


	Six Months Ended June 30, 2014
(In Thousands)	Residential Mortgage Banking		Residential Investments		Commercial Mortgage Banking and Investments		Corporate/ Other		Total
Interest income	$	23,104	$	55,519	$	21,601	$	13,245	$	113,469
Interest expense		(3,482)		(5,966)		(7,708)		(23,055)		(40,211)

Net interest income (loss)		19,622		49,553		13,893		(9,810)		73,258
Provision for loan losses		-		-		(944)		(23)		(967)
Mortgage banking activities, net		265		-		5,814		-		6,079
MSR income (loss), net		-		(1,171)		-		-		(1,171)
Other market valuation adjustments, net		11		(9,746)		-		(525)		(10,260)
Realized gains, net		-		1,979		-		176		2,155
Operating expenses		(16,595)		(1,865)		(4,806)		(18,988)		(42,254)
(Provision for) benefit from income taxes		94		1,676		(395)		135		1,510

Segment Contribution	$	3,397	$	40,426	$	13,562	$	(29,035)



Net Income									$	28,350


Non-cash amortization income (expense)		(88)		21,833		(388)		(4,019)		17,338

	Six Months Ended June 30, 2013
(In Thousands)	Residential Mortgage Banking		Residential Investments		Commercial Mortgage Banking and Investments		Corporate/ Other		Total
Interest income	$	24,914	$	47,533	$	19,794	$	19,002	$	111,243
Interest expense		(5,130)		(5,219)		(5,368)		(24,001)		(39,718)

Net interest income (loss)		19,784		42,314		14,426		(4,999)		71,525
Reversal of provision (provision) for loan losses		-		-		(1,576)		2,809		1,233
Mortgage banking activities, net		81,514		-		12,746		-		94,260
MSR income (loss), net		-		11,568		-		-		11,568
Other market valuation adjustments, net		78		(6,308)		-		(331)		(6,561)
Realized gains, net		-		12,564		210		49		12,823
Operating expenses		(10,691)		(3,539)		(5,850)		(24,536)		(44,616)
(Provision for) benefit from income taxes		(11,314)		(1,661)		(1,718)		644		(14,049)

Segment Contribution	$	79,371	$	54,938	$	18,238	$	(26,364)

Net Income									$	126,183


Non-cash amortization income (expense)		(119)		15,646		(411)		(3,381)		11,735

Supplemental Information by Segment

The following table presents supplemental information by segment at June 30, 2014 and December 31, 2013.

Supplemental Disclosures


(In Thousands)	Residential Mortgage Banking		Residential Investments		Commercial Mortgage Banking and Investments		Corporate/ Other		Total
June 30, 2014
Residential loans, held-for-sale	$	1,107,877	$	-	$	-	$	-	$	1,107,877
Residential loans, held-for-investment		-		-		-		1,616,504		1,616,504
Commercial loans		-		-		468,766		-		468,766
Real estate securities		159,311		1,685,756		-		-		1,845,067
Mortgage servicing rights		-		71,225		-		-		71,225
Total assets		1,291,983		1,774,525		474,821		1,837,221		5,378,550

December 31, 2013
Residential loans, held-for-sale	$	404,267	$	-	$	-	$	-	$	404,267
Residential loans, held-for-investment		-		-		-		1,762,167		1,762,167
Commercial loans		-		-		432,455		-		432,455
Real estate securities		110,505		1,572,356		-		-		1,682,861
Mortgage servicing rights		-		64,824		-		-		64,824
Total assets		531,092		1,655,209		439,139		1,983,088		4,608,528

Corporate and Other

Financial Information by Segment

The following tables present the components of Corporate/Other for the three and six months ended June 30, 2014 and 2013.


	Three Months Ended June 30,
	2014						2013
(In Thousands)	Legacy Consolidated VIEs		Other		Total		Legacy Consolidated VIEs		Other		Total
Interest income	$	6,411	$	3	$	6,414	$	8,786	$	137	$	8,923
Interest expense		(5,240)		(6,230)		(11,470)		(6,728)		(6,555)		(13,283)

Net interest income (loss)		1,171		(6,227)		(5,056)		2,058		(6,418)		(4,360)
Reversal of provision for loan losses		604		-		604		4,163		-		4,163
Mortgage banking activities, net		-		-		-		-		-		-
MSR income, net		-		-		-		-		-		-
Other market valuation adjustments, net		(321)		(25)		(346)		(558)		-		(558)
Realized gains, net		71		-		71		30		-		30
Operating expenses		(42)		(9,789)		(9,831)		(73)		(13,694)		(13,767)
Benefit from income taxes		-		9		9		-		1,000		1,000

Total	$	1,483	$	(16,032)	$	(14,549)	$	5,620	$	(19,111)	$	(13,492)


Non-cash amortization expense		(1,432)		(641)		(2,073)		(1,561)		(523)		(2,084)

	Six Months Ended June 30,
	2014						2013
(In Thousands)	Legacy Consolidated VIEs		Other		Total		Legacy Consolidated VIEs		Other		Total
Interest income	$	13,240	$	5	$	13,245	$	18,853	$	149	$	19,002
Interest expense		(10,699)		(12,356)		(23,055)		(13,997)		(10,004)		(24,001)

Net interest income (loss)		2,541		(12,351)		(9,810)		4,856		(9,855)		(4,999)
Reversal of provision (provision) for loan losses		(23)		-		(23)		2,809		-		2,809
Mortgage banking activities, net		-		-		-		-		-		-
MSR income), net		-		-		-		-		-		-
Other market valuation adjustments, net		(464)		(61)		(525)		(331)		-		(331)
Realized gains, net		176		-		176		49		-		49
Operating expenses		(94)		(18,894)		(18,988)		(107)		(24,429)		(24,536)
Benefit from income taxes		-		135		135		-		644		644

Total	$	2,136	$	(31,171)	$	(29,035)	$	7,276	$	(33,640)	$	(26,364)


Non-cash amortization expense		(2,795)		(1,224)		(4,019)		(2,664)		(717)		(3,381)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details