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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Financial Information by Segment
The following tables present financial information by segment for the three months ended March 31, 2016 and 2015.
Table 22.1 – Business Segment Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
(In Thousands)
 
 Residential Mortgage Banking
 
 Residential Investments
 
 Commercial
 
 Corporate/
Other
 
 Total
Interest income
 
$
7,869

 
$
39,936

 
$
9,581

 
$
4,942

 
$
62,328

Interest expense
 
(3,289
)
 
(4,953
)
 
(2,952
)
 
(12,756
)
 
(23,950
)
Net interest income (loss)
 
4,580

 
34,983

 
6,629

 
(7,814
)
 
38,378

Reversal of provision for loan losses
 
—

 
—

 
(289
)
 
—

 
(289
)
Non-interest income
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
9,280

 
—

 
(2,062
)
 
—

 
7,218

MSR income (loss), net
 
—

 
6,281

 
—

 
—

 
6,281

Investment fair value changes, net
 
—

 
(17,765
)
 
(137
)
 
(1,636
)
 
(19,538
)
Other income
 
—

 
955

 
—

 
—

 
955

Realized gains, net
 
—

 
9,246

 
—

 
292

 
9,538

Total non-interest income, net
 
9,280

 
(1,283
)
 
(2,199
)
 
(1,344
)
 
4,454

Direct operating expenses (1)
 
(5,321
)
 
(1,861
)
 
(1,602
)
 
(21,668
)
 
(30,452
)
Provision for income taxes
 
—

 
(28
)
 
—

 
—

 
(28
)
Segment Contribution
 
$
8,539

 
$
31,811

 
$
2,539

 
$
(30,826
)
 
 
Net Income
 
 
 
 
 
 
 
 
 
$
12,063

Non-cash amortization income (expense)
 
$
(43
)
 
$
8,068

 
$
(16
)
 
$
(990
)
 
$
7,019


(1)
For the three months ended March 31, 2016, charges associated with the restructuring of our conforming residential mortgage loan operations and commercial operations are presented under the Corporate/Other column. See Note 11 for further discussion of these restructuring charges.

 
 
Three Months Ended March 31, 2015
(In Thousands)
 
 Residential Mortgage Banking
 
 Residential Investments
 
 Commercial
 
 Corporate/
Other
 
 Total
Interest income
 
$
15,795

 
$
30,012

 
$
10,914

 
$
7,025

 
$
63,746

Interest expense
 
(3,778
)
 
(2,810
)
 
(3,489
)
 
(13,884
)
 
(23,961
)
Net interest income (loss)
 
12,017

 
27,202

 
7,425

 
(6,859
)
 
39,785

Provision for loan losses
 
—

 
—

 
(206
)
 
—

 
(206
)
Non-interest income
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
2,215

 
—

 
(292
)
 
—

 
1,923

MSR income (loss), net
 
—

 
(10,924
)
 
—

 
—

 
(10,924
)
Investment fair value changes, net
 
2

 
(19
)
 
—

 
(1,128
)
 
(1,145
)
Other income
 
—

 
809

 
—

 
—

 
809

Realized gains, net
 
—

 
4,306

 
—

 
—

 
4,306

Total non-interest income, net
 
2,217

 
(5,828
)
 
(292
)
 
(1,128
)
 
(5,031
)
Direct operating expenses
 
(10,903
)
 
(1,118
)
 
(3,482
)
 
(9,560
)
 
(25,063
)
Benefit from income taxes
 
8

 
3,510

 
853

 
945

 
5,316

Segment Contribution
 
$
3,339

 
$
23,766

 
$
4,298

 
$
(16,602
)
 
 
Net Income
 
 
 
 
 
 
 
 
 
$
14,801

Non-cash amortization income (expense)
 
$
(46
)
 
$
9,838

 
$
(49
)
 
$
(981
)
 
$
8,762
Schedule of Corporate and Other
The following tables present the components of Corporate/Other for the three months ended March 31, 2016 and 2015.
Table 22.2 – Components of Corporate/Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2016
 
2015
(In Thousands)
 
Legacy
VIEs (1)
 
Other
 
Total
 
Legacy
VIEs (1)
 
Other
 
 Total
Interest income
 
$
4,777

 
$
165

 
$
4,942

 
$
7,018

 
$
7

 
$
7,025

Interest expense
 
(3,297
)
 
(9,459
)
 
(12,756
)
 
(4,482
)
 
(9,402
)
 
(13,884
)
Net interest income (loss)
 
1,480

 
(9,294
)
 
(7,814
)
 
2,536

 
(9,395
)
 
(6,859
)
Reversal of provision for loan losses
 
—

 
—

 
—

 
—

 
—

 
—

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
—

 
—

 
—

 
—

 
—

 
—

MSR income (loss), net
 
—

 
—

 
—

 
—

 
—

 
—

Investment fair value changes, net
 
(1,580
)
 
(56
)
 
(1,636
)
 
(1,093
)
 
(35
)
 
(1,128
)
Other income
 
—

 
—

 
—

 
—

 
—

 
—

Realized gains, net
 
—

 
292

 
292

 
—

 
—

 
—

Total non-interest income, net
 
(1,580
)
 
236

 
(1,344
)
 
(1,093
)
 
(35
)
 
(1,128
)
Direct operating expenses
 
—

 
(21,668
)
 
(21,668
)
 
—

 
(9,560
)
 
(9,560
)
(Provision for) benefit from income taxes
 
—

 
—

 
—

 
—

 
945

 
945

Total
 
$
(100
)
 
$
(30,726
)
 
$
(30,826
)
 
$
1,443

 
$
(18,045
)
 
$
(16,602
)
Supplemental Information by Segment
The following table presents supplemental information by segment at March 31, 2016 and December 31, 2015.
Table 22.3 – Supplemental Segment Information
(In Thousands)
 
Residential Mortgage Banking
 
Residential Investments
 
Commercial
 
Corporate/
Other
 
Total
March 31, 2016
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
441,076

 
$
2,343,953

 
$
—

 
$
930,027

 
$
3,715,056

Commercial loans
 
—

 
—

 
363,893

 
—

 
363,893

Real estate securities
 
—

 
909,569

 
10,358

 
—

 
919,927

Mortgage servicing rights
 
—

 
126,620

 
—

 
—

 
126,620

Total assets
 
472,213

 
3,552,629

 
377,452

 
1,324,586

 
5,726,880

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
1,115,738

 
$
1,791,195

 
$
—

 
$
1,021,870

 
$
3,928,803

Commercial loans
 
—

 
—

 
402,647

 
—

 
402,647

Real estate securities
 
197,007

 
1,028,171

 
8,078

 
—

 
1,233,256

Mortgage servicing rights
 
—

 
191,976

 
—

 
—

 
191,976

Total assets
 
1,347,492

 
3,140,604

 
415,716

 
1,316,235

 
6,220,047