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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Business Segment Financial Information | The following tables present financial information by segment for the three and six months ended June 30, 2019 and 2018. Table 24.1 – Business Segment Financial Information
|  | Three Months Ended June 30, 2019
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 132,048 |  |  | $ | 11,352 |  |  | $ | 5,142 |  |  | $ | 148,542 |
Interest expense |  | (93,912 | ) |  | (6,595 | ) |  | (15,713 | ) |  | (116,220 | )
Net interest income (loss) |  | 38,136 |  |  | 4,757 |  |  | (10,571 | ) |  | 32,322 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 19,160 |  |  | — |  |  | 19,160 |
Investment fair value changes, net |  | 3,297 |  |  | — |  |  | (159 | ) |  | 3,138 |
Other income (expense), net |  | 2,874 |  |  | (156 | ) |  | (311 | ) |  | 2,407 |
Realized gains, net |  | 2,827 |  |  | — |  |  | — |  |  | 2,827 |
Total non-interest income, net |  | 8,998 |  |  | 19,004 |  |  | (470 | ) |  | 27,532 |
Direct operating expenses |  | (2,258 | ) |  | (11,571 | ) |  | (12,426 | ) |  | (26,255 | )
Provision for income taxes |  | (896 | ) |  | (1,437 | ) |  | — |  |  | (2,333 | )
Segment Contribution |  | $ | 43,980 |  |  | $ | 10,753 |  |  | $ | (23,467 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 31,266 |
Non-cash amortization income (expense), net |  | $ | 2,622 |  |  | $ | (2,014 | ) |  | $ | (1,125 | ) |  | $ | (517 | )
|  | Three Months Ended June 30, 2018
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 64,569 |  |  | $ | 13,084 |  |  | $ | 5,323 |  |  | $ | 82,976 |
Interest expense |  | (27,004 | ) |  | (7,629 | ) |  | (13,580 | ) |  | (48,213 | )
Net interest income (loss) |  | 37,565 |  |  | 5,455 |  |  | (8,257 | ) |  | 34,763 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 10,596 |  |  | — |  |  | 10,596 |
Investment fair value changes, net |  | 1,600 |  |  | — |  |  | (711 | ) |  | 889 |
Other income, net |  | 3,322 |  |  | — |  |  | — |  |  | 3,322 |
Realized gains, net |  | 4,714 |  |  | — |  |  | — |  |  | 4,714 |
Total non-interest income, net |  | 9,636 |  |  | 10,596 |  |  | (711 | ) |  | 19,521 |
Direct operating expenses |  | (1,858 | ) |  | (5,739 | ) |  | (11,412 | ) |  | (19,009 | )
Provision for income taxes |  | (1,130 | ) |  | (1,398 | ) |  | — |  |  | (2,528 | )
Segment Contribution |  | $ | 44,213 |  |  | $ | 8,914 |  |  | $ | (20,380 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 32,747 |
Non-cash amortization income (expense), net |  | $ | 4,654 |  |  | $ | (22 | ) |  | $ | (891 | ) |  | $ | 3,741 |
|  | Six Months Ended June 30, 2019
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 247,500 |  |  | $ | 21,729 |  |  | $ | 10,354 |  |  | $ | 279,583 |
Interest expense |  | (171,799 | ) |  | (12,159 | ) |  | (31,538 | ) |  | (215,496 | )
Net interest income (loss) |  | 75,701 |  |  | 9,570 |  |  | (21,184 | ) |  | 64,087 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 31,469 |  |  | — |  |  | 31,469 |
Investment fair value changes, net |  | 23,853 |  |  | — |  |  | (556 | ) |  | 23,297 |
Other income, net |  | 4,095 |  |  | (323 | ) |  | 2,222 |  |  | 5,994 |
Realized gains, net |  | 13,513 |  |  | — |  |  | — |  |  | 13,513 |
Total non-interest income, net |  | 41,461 |  |  | 31,146 |  |  | 1,666 |  |  | 74,273 |
Direct operating expenses |  | (4,919 | ) |  | (19,675 | ) |  | (24,820 | ) |  | (49,414 | )
Provision for income taxes |  | (1,238 | ) |  | (1,978 | ) |  | — |  |  | (3,216 | )
Segment Contribution |  | $ | 111,005 |  |  | $ | 19,063 |  |  | $ | (44,338 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 85,730 |
Non-cash amortization income (expense), net |  | $ | 4,990 |  |  | $ | (2,737 | ) |  | $ | (2,425 | ) |  | $ | (172 | )
|  | Six Months Ended June 30, 2018
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
Interest income |  | $ | 123,326 |  |  | $ | 25,981 |  |  | $ | 10,288 |  |  | $ | 159,595 |
Interest expense |  | (46,867 | ) |  | (13,766 | ) |  | (29,094 | ) |  | (89,727 | )
Net interest income (loss) |  | 76,459 |  |  | 12,215 |  |  | (18,806 | ) |  | 69,868 |
Non-interest income |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | — |  |  | 37,172 |  |  | — |  |  | 37,172 |
Investment fair value changes, net |  | 3,190 |  |  | — |  |  | (692 | ) |  | 2,498 |
Other income, net |  | 5,440 |  |  | — |  |  | — |  |  | 5,440 |
Realized gains, net |  | 14,077 |  |  | — |  |  | — |  |  | 14,077 |
Total non-interest income, net |  | 22,707 |  |  | 37,172 |  |  | (692 | ) |  | 59,187 |
Direct operating expenses |  | (3,865 | ) |  | (14,371 | ) |  | (23,803 | ) |  | (42,039 | )
Provision for income taxes |  | (2,018 | ) |  | (5,406 | ) |  | — |  |  | (7,424 | )
Segment Contribution |  | $ | 93,283 |  |  | $ | 29,610 |  |  | $ | (43,301 | ) |  |
Net Income |  |  |  |  |  |  |  | $ | 79,592 |
Non-cash amortization income (expense), net |  | $ | 9,271 |  |  | $ | (44 | ) |  | $ | (1,845 | ) |  | $ | 7,382 |
Components of Corporate and Other | The following table presents the components of Corporate/Other for the three and six months ended June 30, 2019 and 2018. Table 24.2 – Components of Corporate/Other
|  | Three Months Ended June 30,
|  | 2019 |  | 2018
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 4,776 |  |  | $ | 366 |  |  | $ | 5,142 |  |  | $ | 5,017 |  |  | $ | 306 |  |  | $ | 5,323 |
Interest expense |  | (3,981 | ) |  | (11,732 | ) |  | (15,713 | ) |  | (4,215 | ) |  | (9,365 | ) |  | (13,580 | )
Net interest income (loss) |  | 795 |  |  | (11,366 | ) |  | (10,571 | ) |  | 802 |  |  | (9,059 | ) |  | (8,257 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (123 | ) |  | (36 | ) |  | (159 | ) |  | (720 | ) |  | 9 |  |  | (711 | )
Other income |  | — |  |  | (311 | ) |  | (311 | ) |  | — |  |  | — |  |  | — |
Total non-interest income, net |  | (123 | ) |  | (347 | ) |  | (470 | ) |  | (720 | ) |  | 9 |  |  | (711 | )
Direct operating expenses |  | — |  |  | (12,426 | ) |  | (12,426 | ) |  | — |  |  | (11,412 | ) |  | (11,412 | )
Total |  | $ | 672 |  |  | $ | (24,139 | ) |  | $ | (23,467 | ) |  | $ | 82 |  |  | $ | (20,462 | ) |  | $ | (20,380 | )
|  | Six Months Ended June 30,
|  | 2019 |  | 2018
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 9,629 |  |  | $ | 725 |  |  | $ | 10,354 |  |  | $ | 9,829 |  |  | $ | 459 |  |  | $ | 10,288 |
Interest expense |  | (8,096 | ) |  | (23,442 | ) |  | (31,538 | ) |  | (8,067 | ) |  | (21,027 | ) |  | (29,094 | )
Net interest income (loss) |  | 1,533 |  |  | (22,717 | ) |  | (21,184 | ) |  | 1,762 |  |  | (20,568 | ) |  | (18,806 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (497 | ) |  | (59 | ) |  | (556 | ) |  | (728 | ) |  | 36 |  |  | (692 | )
Other income |  | — |  |  | 2,222 |  |  | 2,222 |  |  | — |  |  | — |  |  | — |
Total non-interest income, net |  | (497 | ) |  | 2,163 |  |  | 1,666 |  |  | (728 | ) |  | 36 |  |  | (692 | )
Direct operating expenses |  | — |  |  | (24,820 | ) |  | (24,820 | ) |  | — |  |  | (23,803 | ) |  | (23,803 | )
Total |  | $ | 1,036 |  |  | $ | (45,374 | ) |  | $ | (44,338 | ) |  | $ | 1,034 |  |  | $ | (44,335 | ) |  | $ | (43,301 | )
(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 June 30, 2019 and December 31, 2018. Table 24.3 – Supplemental Segment Information
(In Thousands) |  | Investment Portfolio |  | Mortgage Banking |  | Corporate/ Other |  | Total
June 30, 2019 |  |  |  |  |  |  |  |
Residential loans |  | $ | 5,777,759 |  |  | $ | 1,047,856 |  |  | $ | 457,750 |  |  | $ | 7,283,365 |
Business purpose residential loans |  | 159,353 |  |  | 91,501 |  |  | — |  |  | 250,854 |
Multifamily loans |  | 3,749,657 |  |  | — |  |  | — |  |  | 3,749,657 |
Real estate securities |  | 1,477,486 |  |  | — |  |  | — |  |  | 1,477,486 |
Other investments |  | 369,900 |  |  | 2,230 |  |  | — |  |  | 372,130 |
Goodwill and intangible assets |  | — |  |  | 50,999 |  |  | — |  |  | 50,999 |
Total assets |  | 11,790,419 |  |  | 1,225,117 |  |  | 836,050 |  |  | 13,851,586 |
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 |

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