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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Business Segment Financial Information | The following tables present financial information by segment for the three and nine months ended September 30, 2018 and 2017. Table 22.1 – Business Segment Financial Information
|  | Three Months Ended September 30, 2018
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 79,556 |  |  | $ | 14,427 |  |  | $ | 5,414 |  |  | $ | 99,397 |
Interest expense |  | (40,852 | ) |  | (7,537 | ) |  | (15,962 | ) |  | (64,351 | )
Net interest income (loss) |  | 38,704 |  |  | 6,890 |  |  | (10,548 | ) |  | 35,046 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 11,224 |  |  | — |  |  | 11,224 |
Investment fair value changes, net |  | 10,566 |  |  | — |  |  | (234 | ) |  | 10,332 |
Other income, net |  | 3,334 |  |  | — |  |  | 119 |  |  | 3,453 |
Realized gains, net |  | 7,275 |  |  | — |  |  | — |  |  | 7,275 |
Total non-interest income, net |  | 21,175 |  |  | 11,224 |  |  | (115 | ) |  | 32,284 |
Direct operating expenses |  | (2,659 | ) |  | (6,570 | ) |  | (12,261 | ) |  | (21,490 | )
Provision for income taxes |  | (2,840 | ) |  | (2,079 | ) |  | — |  |  | (4,919 | )
Segment Contribution |  | $ | 54,380 |  |  | $ | 9,465 |  |  | $ | (22,924 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 40,921 |
Non-cash amortization income (expense), net |  | $ | 4,019 |  |  | $ | (54 | ) |  | $ | (1,176 | ) |  | $ | 2,789 |
|  | Three Months Ended September 30, 2017
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 47,023 |  |  | $ | 10,626 |  |  | $ | 5,088 |  |  | $ | 62,737 |
Interest expense |  | (9,445 | ) |  | (4,135 | ) |  | (13,863 | ) |  | (27,443 | )
Net interest income (loss) |  | 37,578 |  |  | 6,491 |  |  | (8,775 | ) |  | 35,294 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 21,200 |  |  | — |  |  | 21,200 |
Investment fair value changes, net |  | 1,372 |  |  | — |  |  | (1,048 | ) |  | 324 |
Other income, net |  | 2,812 |  |  | — |  |  | — |  |  | 2,812 |
Realized gains, net |  | 1,734 |  |  | — |  |  | — |  |  | 1,734 |
Total non-interest income, net |  | 5,918 |  |  | 21,200 |  |  | (1,048 | ) |  | 26,070 |
Direct operating expenses |  | (1,324 | ) |  | (6,107 | ) |  | (12,491 | ) |  | (19,922 | )
Provision for income taxes |  | (433 | ) |  | (4,829 | ) |  | — |  |  | (5,262 | )
Segment Contribution |  | $ | 41,739 |  |  | $ | 16,755 |  |  | $ | (22,314 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 36,180 |
Non-cash amortization income (expense) |  | $ | 5,222 |  |  | $ | (25 | ) |  | $ | (787 | ) |  | $ | 4,410 |
|  | Nine Months Ended September 30, 2018
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 202,882 |  |  | $ | 40,408 |  |  | $ | 15,702 |  |  | $ | 258,992 |
Interest expense |  | (87,719 | ) |  | (21,303 | ) |  | (45,056 | ) |  | (154,078 | )
Net interest income (loss) |  | 115,163 |  |  | 19,105 |  |  | (29,354 | ) |  | 104,914 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 48,396 |  |  | — |  |  | 48,396 |
Investment fair value changes, net |  | 13,756 |  |  | — |  |  | (926 | ) |  | 12,830 |
Other income, net |  | 8,774 |  |  | — |  |  | 119 |  |  | 8,893 |
Realized gains, net |  | 21,352 |  |  | — |  |  | — |  |  | 21,352 |
Total non-interest income, net |  | 43,882 |  |  | 48,396 |  |  | (807 | ) |  | 91,471 |
Direct operating expenses |  | (6,524 | ) |  | (20,941 | ) |  | (36,064 | ) |  | (63,529 | )
Provision for income taxes |  | (4,858 | ) |  | (7,485 | ) |  | — |  |  | (12,343 | )
Segment Contribution |  | $ | 147,663 |  |  | $ | 39,075 |  |  | $ | (66,225 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 120,513 |
Non-cash amortization income (expense) |  | $ | 13,290 |  |  | $ | (99 | ) |  | $ | (3,021 | ) |  | $ | 10,170 |
|  | Nine Months Ended September 30, 2017
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 135,106 |  |  | $ | 26,515 |  |  | $ | 14,968 |  |  | $ | 176,589 |
Interest expense |  | (21,940 | ) |  | (11,462 | ) |  | (39,306 | ) |  | (72,708 | )
Net interest income (loss) |  | 113,166 |  |  | 15,053 |  |  | (24,338 | ) |  | 103,881 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 50,850 |  |  | — |  |  | 50,850 |
Investment fair value changes, net |  | 13,846 |  |  | — |  |  | (3,856 | ) |  | 9,990 |
Other income, net |  | 9,473 |  |  | — |  |  | — |  |  | 9,473 |
Realized gains, net |  | 9,561 |  |  | — |  |  | (752 | ) |  | 8,809 |
Total non-interest income, net |  | 32,880 |  |  | 50,850 |  |  | (4,608 | ) |  | 79,122 |
Direct operating expenses |  | (4,371 | ) |  | (18,009 | ) |  | (34,409 | ) |  | (56,789 | )
Provision for income taxes |  | (4,490 | ) |  | (12,251 | ) |  | — |  |  | (16,741 | )
Segment Contribution |  | $ | 137,185 |  |  | $ | 35,643 |  |  | $ | (63,355 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 109,473 |
Non-cash amortization income (expense) |  | $ | 16,263 |  |  | $ | (79 | ) |  | $ | (2,528 | ) |  | $ | 13,656 |
Components of Corporate and Other | The following table presents the components of Corporate/Other for the three and nine months ended September 30, 2018 and 2017. Table 22.2 – Components of Corporate/Other
|  | Three Months Ended September 30,
|  | 2018 |  | 2017
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 5,174 |  |  | $ | 240 |  |  | $ | 5,414 |  |  | $ | 4,875 |  |  | $ | 213 |  |  | $ | 5,088 |
Interest expense |  | (4,257 | ) |  | (11,705 | ) |  | (15,962 | ) |  | (3,838 | ) |  | (10,025 | ) |  | (13,863 | )
Net interest income (loss) |  | 917 |  |  | (11,465 | ) |  | (10,548 | ) |  | 1,037 |  |  | (9,812 | ) |  | (8,775 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (248 | ) |  | 14 |  |  | (234 | ) |  | (1,045 | ) |  | (3 | ) |  | (1,048 | )
Other income |  | — |  |  | 119 |  |  | 119 |  |  | — |  |  | — |  |  | — |
Total non-interest income, net |  | (248 | ) |  | 133 |  |  | (115 | ) |  | (1,045 | ) |  | (3 | ) |  | (1,048 | )
Direct operating expenses |  | — |  |  | (12,261 | ) |  | (12,261 | ) |  | — |  |  | (12,491 | ) |  | (12,491 | )
Total |  | $ | 669 |  |  | $ | (23,593 | ) |  | $ | (22,924 | ) |  | $ | (8 | ) |  | $ | (22,306 | ) |  | $ | (22,314 | )
|  | Nine Months Ended September 30,
|  | 2018 |  | 2017
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 15,003 |  |  | $ | 699 |  |  | $ | 15,702 |  |  | $ | 14,576 |  |  | $ | 392 |  |  | $ | 14,968 |
Interest expense |  | (12,324 | ) |  | (32,732 | ) |  | (45,056 | ) |  | (11,046 | ) |  | (28,260 | ) |  | (39,306 | )
Net interest income (loss) |  | 2,679 |  |  | (32,033 | ) |  | (29,354 | ) |  | 3,530 |  |  | (27,868 | ) |  | (24,338 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (976 | ) |  | 50 |  |  | (926 | ) |  | (3,842 | ) |  | (14 | ) |  | (3,856 | )
Other income |  | — |  |  | 119 |  |  | 119 |  |  | — |  |  | — |  |  | — |
Realized gains, net |  | — |  |  | — |  |  | — |  |  | — |  |  | (752 | ) |  | (752 | )
Total non-interest income, net |  | (976 | ) |  | 169 |  |  | (807 | ) |  | (3,842 | ) |  | (766 | ) |  | (4,608 | )
Direct operating expenses |  | — |  |  | (36,064 | ) |  | (36,064 | ) |  | — |  |  | (34,409 | ) |  | (34,409 | )
Total |  | $ | 1,703 |  |  | $ | (67,928 | ) |  | $ | (66,225 | ) |  | $ | (312 | ) |  | $ | (63,043 | ) |  | $ | (63,355 | )
(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 September 30, 2018 and December 31, 2017. Table 22.3 – Supplemental Segment Information
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
September 30, 2018 |  |  |  |  |  |  |  |
Residential loans |  | $ | 4,501,857 |  |  | $ | 866,444 |  |  | $ | 553,958 |  |  | $ | 5,922,259 |
Business purpose loans |  | 95,515 |  |  | 20,105 |  |  | — |  |  | 115,620 |
Multifamily loans |  | 942,165 |  |  | — |  |  | — |  |  | 942,165 |
Real estate securities |  | 1,470,084 |  |  | — |  |  | — |  |  | 1,470,084 |
Total assets |  | 7,436,674 |  |  | 909,926 |  |  | 793,035 |  |  | 9,139,635 |
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 |
Total assets |  | 4,743,873 |  |  | 1,453,069 |  |  | 842,880 |  |  | 7,039,822 |

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