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Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Financial Information by Segment | The following tables present financial information by segment for the years ended December 31, 2017, 2016, and 2015. Table 21.1 – Business Segment Financial Information
|  | Year Ended December 31, 2017
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 188,760 |  |  | $ | 39,309 |  |  | $ | 19,988 |  |  | $ | 248,057 |
Interest expense |  | (36,690 | ) |  | (17,369 | ) |  | (54,757 | ) |  | (108,816 | )
Net interest income (loss) |  | 152,070 |  |  | 21,940 |  |  | (34,769 | ) |  | 139,241 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 53,908 |  |  | — |  |  | 53,908 |
MSR income, net |  | 7,860 |  |  | — |  |  | — |  |  | 7,860 |
Investment fair value changes, net |  | 18,414 |  |  | — |  |  | (8,040 | ) |  | 10,374 |
Other income |  | 4,576 |  |  | — |  |  | — |  |  | 4,576 |
Realized gains, net |  | 14,107 |  |  | — |  |  | (752 | ) |  | 13,355 |
Total non-interest income, net |  | 44,957 |  |  | 53,908 |  |  | (8,792 | ) |  | 90,073 |
Direct operating expenses |  | (6,028 | ) |  | (25,113 | ) |  | (46,015 | ) |  | (77,156 | )
Provision for income taxes |  | (5,328 | ) |  | (6,424 | ) |  | — |  |  | (11,752 | )
Segment Contribution |  | $ | 185,671 |  |  | $ | 44,311 |  |  | $ | (89,576 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 140,406 |
Non-cash amortization income (expense), net |  | $ | 20,974 |  |  | $ | (102 | ) |  | $ | (3,410 | ) |  | $ | 17,462 |
|  | Year Ended December 31, 2016
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 192,200 |  |  | $ | 33,661 |  |  | $ | 20,494 |  |  | $ | 246,355 |
Interest expense |  | (22,997 | ) |  | (14,191 | ) |  | (51,340 | ) |  | (88,528 | )
Net interest income (loss) |  | 169,203 |  |  | 19,470 |  |  | (30,846 | ) |  | 157,827 |
Reversal of provision for loan losses |  | 7,102 |  |  | — |  |  | — |  |  | 7,102 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 40,753 |  |  | (2,062 | ) |  | 38,691 |
MSR income, net |  | 14,353 |  |  | — |  |  | — |  |  | 14,353 |
Investment fair value changes, net |  | (24,367 | ) |  | — |  |  | (4,207 | ) |  | (28,574 | )
Other income |  | 6,338 |  |  | — |  |  | — |  |  | 6,338 |
Realized gains, net |  | 27,717 |  |  | — |  |  | 292 |  |  | 28,009 |
Total non-interest income, net |  | 24,041 |  |  | 40,753 |  |  | (5,977 | ) |  | 58,817 |
Direct operating expenses (1) |  | (10,421 | ) |  | (23,252 | ) |  | (55,113 | ) |  | (88,786 | )
Provision for income taxes |  | (1,848 | ) |  | (1,860 | ) |  | — |  |  | (3,708 | )
Segment Contribution |  | $ | 188,077 |  |  | $ | 35,111 |  |  | $ | (91,936 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 131,252 |
Non-cash amortization income (expense), net |  | $ | 29,806 |  |  | $ | (130 | ) |  | $ | (3,972 | ) |  | $ | 25,704 |
|  | Year Ended December 31, 2015
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 177,595 |  |  | $ | 52,260 |  |  | $ | 29,577 |  |  | $ | 259,432 |
Interest expense |  | (22,684 | ) |  | (17,207 | ) |  | (55,992 | ) |  | (95,883 | )
Net interest income (loss) |  | 154,911 |  |  | 35,053 |  |  | (26,415 | ) |  | 163,549 |
Reversal of provision for loan losses |  | 355 |  |  | — |  |  | — |  |  | 355 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 8,268 |  |  | 2,704 |  |  | 10,972 |
MSR loss, net |  | (3,922 | ) |  | — |  |  | — |  |  | (3,922 | )
Investment fair value changes, net |  | (20,089 | ) |  | — |  |  | (1,268 | ) |  | (21,357 | )
Other income |  | 3,192 |  |  | — |  |  | — |  |  | 3,192 |
Realized gains, net |  | 36,369 |  |  | — |  |  | — |  |  | 36,369 |
Total non-interest income, net |  | 15,550 |  |  | 8,268 |  |  | 1,436 |  |  | 25,254 |
Direct operating expenses |  | (7,179 | ) |  | (43,182 | ) |  | (47,055 | ) |  | (97,416 | )
Benefit from income taxes |  | 846 |  |  | 4,169 |  |  | 5,331 |  |  | 10,346 |
Segment Contribution |  | $ | 164,483 |  |  | $ | 4,308 |  |  | $ | (66,703 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 102,088 |
Non-cash amortization income (expense), net |  | $ | 36,583 |  |  | $ | (186 | ) |  | $ | (3,994 | ) |  | $ | 32,403 |
Hedging allocations |  | (1,070 | ) |  | 1,120 |  |  | (50 | ) |  | — |
(1) | For the year ended December 31, 2016, charges 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. See Note 10 for further discussion of these restructuring charges.
Schedule Of Corporate And Other | The following table presents the components of Corporate/Other for the years ended December 31, 2017, 2016, and 2015. Table 21.2 – Components of Corporate/Other
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 19,407 |  |  | $ | 581 |  |  | $ | 19,988 |  |  | $ | 19,537 |  |  | $ | 957 |  |  | $ | 20,494 |  |  | $ | 24,814 |  |  | $ | 4,763 |  |  | $ | 29,577 |
Interest expense |  | (14,789 | ) |  | (39,968 | ) |  | (54,757 | ) |  | (13,103 | ) |  | (38,237 | ) |  | (51,340 | ) |  | (15,646 | ) |  | (40,346 | ) |  | (55,992 | )
Net interest income (loss) |  | 4,618 |  |  | (39,387 | ) |  | (34,769 | ) |  | 6,434 |  |  | (37,280 | ) |  | (30,846 | ) |  | 9,168 |  |  | (35,583 | ) |  | (26,415 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,062 | ) |  | (2,062 | ) |  | — |  |  | 2,704 |  |  | 2,704 |
Investment fair value changes, net |  | (8,027 | ) |  | (13 | ) |  | (8,040 | ) |  | (4,200 | ) |  | (7 | ) |  | (4,207 | ) |  | (1,192 | ) |  | (76 | ) |  | (1,268 | )
Realized gains, net |  | — |  |  | (752 | ) |  | (752 | ) |  | — |  |  | 292 |  |  | 292 |  |  | — |  |  | — |  |  | — |
Total non-interest (loss) income, net |  | (8,027 | ) |  | (765 | ) |  | (8,792 | ) |  | (4,200 | ) |  | (1,777 | ) |  | (5,977 | ) |  | (1,192 | ) |  | 2,628 |  |  | 1,436 |
Direct operating expenses |  | — |  |  | (46,015 | ) |  | (46,015 | ) |  | — |  |  | (55,113 | ) |  | (55,113 | ) |  | — |  |  | (47,055 | ) |  | (47,055 | )
Benefit from income taxes |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,331 |  |  | 5,331 |
Total |  | $ | (3,409 | ) |  | $ | (86,167 | ) |  | $ | (89,576 | ) |  | $ | 2,234 |  |  | $ | (94,170 | ) |  | $ | (91,936 | ) |  | $ | 7,976 |  |  | $ | (74,679 | ) |  | $ | (66,703 | )
(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 Balance Sheet | The following table presents supplemental information by segment at December 31, 2017 and December 31, 2016. Table 21.3 – Supplemental Segment Information
(In Thousands) |  | Investment Portfolio |  | Residential Mortgage Banking |  | Corporate/ Other |  | Total
December 31, 2017 |  |  |  |  |  |  |  |
Residential loans |  | $ | 3,054,448 |  |  | $ | 1,427,945 |  |  | $ | 632,817 |  |  | $ | 5,115,210 |
Real estate securities |  | 1,476,510 |  |  | — |  |  | — |  |  | 1,476,510 |
Mortgage servicing rights |  | 63,598 |  |  | — |  |  | — |  |  | 63,598 |
Total assets |  | 4,743,873 |  |  | 1,453,069 |  |  | 842,880 |  |  | 7,039,822 |
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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