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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Business Segment Financial Information
The following tables present financial information by segment for the three months ended March 31, 2018 and 2017.
Table 21.1 – Business Segment Financial Information
 
 
Three Months Ended March 31, 2018
(In Thousands)
 
Investment Portfolio
 
 Residential Mortgage Banking
 
 Corporate/
Other
 
 Total
Interest income
 
$
58,757

 
$
12,897

 
$
4,965

 
$
76,619

Interest expense
 
(19,863
)
 
(6,137
)
 
(15,514
)
 
(41,514
)
Net interest income (loss)
 
38,894


6,760


(10,549
)
 
35,105

Non-interest income
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
—

 
26,576

 
—

 
26,576

MSR income, net
 
957

 
—

 
—

 
957

Investment fair value changes, net
 
1,590

 
—

 
19

 
1,609

Other income
 
1,161

 
—

 
—

 
1,161

Realized gains, net
 
9,363

 
—

 
—

 
9,363

Total non-interest income, net
 
13,071


26,576


19

 
39,666

Direct operating expenses
 
(2,007
)
 
(8,632
)
 
(12,391
)
 
(23,030
)
Provision for income taxes
 
(888
)
 
(4,008
)
 
—

 
(4,896
)
Segment Contribution
 
$
49,070


$
20,696


$
(22,921
)
 
 
Net Income
 
 
 
 
 
 
 
$
46,845

Non-cash amortization income (expense), net
 
$
4,617

 
$
(22
)
 
$
(858
)
 
$
3,737

 
 
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

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
Components of Corporate and Other
The following table presents the components of Corporate/Other for the three months ended March 31, 2018 and 2017.
Table 21.2 – Components of Corporate/Other
 
 
Three Months Ended March 31,
 
 
2018
 
2017
(In Thousands)
 
Legacy Consolidated VIEs (1)
 
Other
 
Total
 
Legacy Consolidated VIEs (1)
 
Other
 
 Total
Interest income
 
$
4,812

 
$
153

 
$
4,965

 
$
4,838

 
$
66

 
$
4,904

Interest expense
 
(3,852
)
 
(11,662
)
 
(15,514
)
 
(3,516
)
 
(9,327
)
 
(12,843
)
Net interest income (loss)
 
960

 
(11,509
)
 
(10,549
)
 
1,322

 
(9,261
)
 
(7,939
)
Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Investment fair value changes, net
 
(8
)
 
27

 
19

 
(1,810
)
 
2

 
(1,808
)
Total non-interest income, net
 
(8
)
 
27

 
19

 
(1,810
)
 
2

 
(1,808
)
Direct operating expenses
 
—

 
(12,391
)
 
(12,391
)
 
—

 
(10,752
)
 
(10,752
)
Total
 
$
952

 
$
(23,873
)
 
$
(22,921
)
 
$
(488
)
 
$
(20,011
)
 
$
(20,499
)
(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, 2018 and December 31, 2017.
Table 21.3 – Supplemental Segment Information
(In Thousands)
 
Investment Portfolio
 
Residential Mortgage Banking
 
Corporate/
Other
 
Total
March 31, 2018
 
 
 
 
 
 
 
 
Residential loans
 
$
3,389,404

 
$
1,130,185

 
$
626,151

 
$
5,145,740

Real estate securities
 
1,357,720

 
—

 
—

 
1,357,720

Mortgage servicing rights
 
66,496

 
—

 
—

 
66,496

Total assets
 
5,012,235

 
1,154,413

 
832,925

 
6,999,573

 
 
 
 
 
 
 
 
 
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