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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Business Segment Financial Information
The following tables present financial information by segment for the three months ended March 31, 2019 and 2018.
Table 23.1 – Business Segment Financial Information
 
 
Three Months Ended March 31, 2019
(In Thousands)
 
Investment Portfolio
 
Mortgage Banking
 
 Corporate/
Other
 
 Total
Interest income
 
$
115,452

 
$
10,377

 
$
5,212

 
$
131,041

Interest expense
 
(77,887
)
 
(5,564
)
 
(15,825
)
 
(99,276
)
Net interest income (loss)
 
37,565


4,813


(10,613
)
 
31,765

Non-interest income
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
—

 
12,309

 
—

 
12,309

Investment fair value changes, net
 
20,556

 
—

 
(397
)
 
20,159

Other income (expense), net
 
1,221

 
(167
)
 
2,533

 
3,587

Realized gains, net
 
10,686

 
—

 
—

 
10,686

Total non-interest income, net
 
32,463


12,142


2,136

 
46,741

Direct operating expenses
 
(2,661
)
 
(8,104
)
 
(12,394
)
 
(23,159
)
Provision for income taxes
 
(342
)
 
(541
)
 
—

 
(883
)
Segment Contribution
 
$
67,025


$
8,310


$
(20,871
)
 
 
Net Income
 
 
 
 
 
 
 
$
54,464

Non-cash amortization income (expense), net
 
$
2,368

 
$
(723
)
 
$
(1,300
)
 
$
345

 
 
Three Months Ended March 31, 2018
(In Thousands)
 
Investment Portfolio
 
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

Investment fair value changes, net
 
1,590

 
—

 
19

 
1,609

Other income, net
 
2,118

 
—

 
—

 
2,118

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
)
 
$
(954
)
 
$
3,641
Components of Corporate and Other
The following table presents the components of Corporate/Other for the three months ended March 31, 2019 and 2018.
Table 23.2 – Components of Corporate/Other
 
 
Three Months Ended March 31,
 
 
2019
 
2018
(In Thousands)
 
Legacy Consolidated VIEs (1)
 
Other
 
Total
 
Legacy Consolidated VIEs (1)
 
Other
 
 Total
Interest income
 
$
4,853

 
$
359

 
$
5,212

 
$
4,812

 
$
153

 
$
4,965

Interest expense
 
(4,115
)
 
(11,710
)
 
(15,825
)
 
(3,852
)
 
(11,662
)
 
(15,514
)
Net interest income (loss)
 
738

 
(11,351
)
 
(10,613
)
 
960

 
(11,509
)
 
(10,549
)
Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Investment fair value changes, net
 
(374
)
 
(23
)
 
(397
)
 
(8
)
 
27

 
19

Other income
 
—

 
2,533

 
2,533

 
—

 
—

 
—

Total non-interest income, net
 
(374
)
 
2,510

 
2,136

 
(8
)
 
27

 
19

Direct operating expenses
 
—

 
(12,394
)
 
(12,394
)
 
—

 
(12,391
)
 
(12,391
)
Total
 
$
364

 
$
(21,235
)
 
$
(20,871
)
 
$
952

 
$
(23,873
)
 
$
(22,921
)
(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, 2019 and December 31, 2018.
Table 23.3 – Supplemental Segment Information
(In Thousands)
 
Investment Portfolio
 
Mortgage Banking
 
Corporate/
Other
 
Total
March 31, 2019
 
 
 
 
 
 
 
 
Residential loans
 
$
5,988,583

 
$
797,073

 
$
488,645

 
$
7,274,301

Business purpose residential loans
 
103,916

 
56,696

 
—

 
160,612

Multifamily loans
 
2,175,899

 
—

 
—

 
2,175,899

Real estate securities
 
1,543,152

 
—

 
—

 
1,543,152

Other investments
 
411,853

 
2,345

 
—

 
414,198

Goodwill and intangible assets
 
—

 
52,895

 
—

 
52,895

Total assets
 
10,444,279

 
942,596

 
806,484

 
12,193,359

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
Residential loans
 
$
5,685,983

 
$
1,048,801

 
$
519,958

 
$
7,254,742

Business purpose residential loans
 
112,798

 
28,460

 
—

 
141,258

Multifamily loans
 
2,144,598

 
—

 
—

 
2,144,598

Real estate securities
 
1,452,494

 
—

 
—

 
1,452,494

Other investments
 
427,764

 
—

 
10,754

 
438,518

Total assets
 
10,093,993

 
1,103,090

 
740,323

 
11,937,406