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Segment Information (Tables) | 3 Months Ended
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Mar. 31, 2017
Segment Reporting [Abstract] |
Business Segment Financial Information | The following tables present financial information by segment for the three months ended March 31, 2017 and 2016. Table 21.1 – Business Segment Financial Information
|  | Three Months Ended March 31, 2017
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 42,250 |  |  | $ | 7,474 |  |  | $ | 4,904 |  |  | $ | 54,628 |
Interest expense |  | (5,264 | ) |  | (2,924 | ) |  | (12,843 | ) |  | (21,031 | )
Net interest income (loss) |  | 36,986 |  |  | 4,550 |  |  | (7,939 | ) |  | 33,597 |
Reversal of provision for loan losses |  | — |  |  | — |  |  | — |  |  | — |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 17,604 |  |  | — |  |  | 17,604 |
MSR income, net |  | 1,713 |  |  | — |  |  | — |  |  | 1,713 |
Investment fair value changes, net |  | 3,359 |  |  | — |  |  | (1,808 | ) |  | 1,551 |
Other income |  | 1,184 |  |  | — |  |  | — |  |  | 1,184 |
Realized gains, net |  | 5,703 |  |  | — |  |  | — |  |  | 5,703 |
Total non-interest income, net |  | 11,959 |  |  | 17,604 |  |  | (1,808 | ) |  | 27,755 |
Direct operating expenses |  | (1,593 | ) |  | (5,881 | ) |  | (10,752 | ) |  | (18,226 | )
Provision for income taxes |  | (1,737 | ) |  | (4,420 | ) |  | — |  |  | (6,157 | )
Segment Contribution |  | $ | 45,615 |  |  | $ | 11,853 |  |  | $ | (20,499 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 36,969 |
Non-cash amortization income (expense) |  | $ | 5,847 |  |  | $ | (27 | ) |  | $ | (997 | ) |  | $ | 4,823 |
|  | Three Months Ended March 31, 2016
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 48,763 |  |  | $ | 7,869 |  |  | $ | 5,696 |  |  | $ | 62,328 |
Interest expense |  | (7,507 | ) |  | (3,289 | ) |  | (13,154 | ) |  | (23,950 | )
Net interest income (loss) |  | 41,256 |  |  | 4,580 |  |  | (7,458 | ) |  | 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, net |  | 6,281 |  |  | — |  |  | — |  |  | 6,281 |
Investment fair value changes, net |  | (17,902 | ) |  | — |  |  | (1,636 | ) |  | (19,538 | )
Other income |  | 955 |  |  | — |  |  | — |  |  | 955 |
Realized gains, net |  | 9,246 |  |  | — |  |  | 292 |  |  | 9,538 |
Total non-interest income, net |  | (1,420 | ) |  | 9,280 |  |  | (3,406 | ) |  | 4,454 |
Direct operating expenses (1) |  | (2,111 | ) |  | (5,321 | ) |  | (23,020 | ) |  | (30,452 | )
Provision for income taxes |  | (28 | ) |  | — |  |  | — |  |  | (28 | )
Segment Contribution |  | $ | 37,408 |  |  | $ | 8,539 |  |  | $ | (33,884 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 12,063 |
Non-cash amortization income (expense) |  | $ | 8,052 |  |  | $ | (43 | ) |  | $ | (990 | ) |  | $ | 7,019 |
(1) | For the three months ended March 31, 2016, $11 million of costs associated with the restructuring of our conforming residential mortgage loan operations and commercial operations, included in the direct operating expense line item, are presented under the Corporate/Other column.
Components of Corporate and Other | The following tables present the components of Corporate/Other for the three months ended March 31, 2017 and 2016. Table 21.2 – Components of Corporate/Other
|  | Three Months Ended March 31,
|  | 2017 |  | 2016
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 4,838 |  |  | $ | 66 |  |  | $ | 4,904 |  |  | $ | 4,777 |  |  | $ | 919 |  |  | $ | 5,696 |
Interest expense |  | (3,516 | ) |  | (9,327 | ) |  | (12,843 | ) |  | (3,297 | ) |  | (9,857 | ) |  | (13,154 | )
Net interest income (loss) |  | 1,322 |  |  | (9,261 | ) |  | (7,939 | ) |  | 1,480 |  |  | (8,938 | ) |  | (7,458 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,062 | ) |  | (2,062 | )
Investment fair value changes, net |  | (1,810 | ) |  | 2 |  |  | (1,808 | ) |  | (1,580 | ) |  | (56 | ) |  | (1,636 | )
Realized gains, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 292 |  |  | 292 |
Total non-interest income, net |  | (1,810 | ) |  | 2 |  |  | (1,808 | ) |  | (1,580 | ) |  | (1,826 | ) |  | (3,406 | )
Direct operating expenses |  | — |  |  | (10,752 | ) |  | (10,752 | ) |  | — |  |  | (23,020 | ) |  | (23,020 | )
Provision for income taxes |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | (488 | ) |  | $ | (20,011 | ) |  | $ | (20,499 | ) |  | $ | (100 | ) |  | $ | (33,784 | ) |  | $ | (33,884 | )
(1) | Legacy consolidated VIEs represent legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
Supplemental Information by Segment | The following table presents supplemental information by segment at March 31, 2017 and December 31, 2016. Table 21.3 – Supplemental Segment Information
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
March 31, 2017 |  |  |  |  |  |  |  |
Residential loans |  | $ | 2,350,013 |  |  | $ | 376,607 |  |  | $ | 745,621 |  |  | $ | 3,472,241 |
Real estate securities |  | 1,165,940 |  |  | — |  |  | — |  |  | 1,165,940 |
Mortgage servicing rights |  | 111,013 |  |  | — |  |  | — |  |  | 111,013 |
Total assets |  | 3,771,370 |  |  | 410,229 |  |  | 1,032,692 |  |  | 5,214,291 |
December 31, 2016 |  |  |  |  |  |  |  |
Residential loans |  | $ | 2,261,016 |  |  | $ | 835,399 |  |  | $ | 791,636 |  |  | $ | 3,888,051 |
Real estate securities |  | 1,018,439 |  |  | — |  |  |  |  |  | 1,018,439 |
Mortgage servicing rights |  | 118,526 |  |  | — |  |  | — |  |  | 118,526 |
Total assets |  | 3,615,535 |  |  | 866,356 |  |  | 1,001,586 |  |  | 5,483,477 |

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