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v3.19.3.a.u2

Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Financial Information by Segment | The following tables present financial information by segment for the years ended December 31, 2019, 2018, and 2017. Table 24.1 – Business Segment Financial Information
|  | Year Ended December 31, 2019
(In Thousands) |  | Residential Lending |  | Business Purpose Lending |  | Multifamily Investments |  | Third-Party Residential Investments |  | Corporate/ Other |  | Total
Interest income |  | $ | 268,559 |  |  | $ | 54,372 |  |  | $ | 161,692 |  |  | $ | 120,009 |  |  | $ | 17,649 |  |  | $ | 622,281 |
Interest expense |  | (192,359 | ) |  | (35,663 | ) |  | (151,980 | ) |  | (85,388 | ) |  | (14,418 | ) |  | (479,808 | )
Net interest income |  | 76,200 |  |  | 18,709 |  |  | 9,712 |  |  | 34,621 |  |  | 3,231 |  |  | 142,473 |
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 47,743 |  |  | 39,523 |  |  | — |  |  | — |  |  | — |  |  | 87,266 |
Investment fair value changes, net |  | (27,920 | ) |  | (6,722 | ) |  | 27,097 |  |  | 44,662 |  |  | (1,617 | ) |  | 35,500 |
Other income |  | 9,210 |  |  | 5,852 |  |  | 1,484 |  |  | — |  |  | 2,711 |  |  | 19,257 |
Realized gains, net |  | 8,292 |  |  | — |  |  | 134 |  |  | 15,395 |  |  | — |  |  | 23,821 |
Total non-interest income, net |  | 37,325 |  |  | 38,653 |  |  | 28,715 |  |  | 60,057 |  |  | 1,094 |  |  | 165,844 |
General and administrative expenses |  | (30,671 | ) |  | (30,655 | ) |  | (1,498 | ) |  | (2,843 | ) |  | (53,005 | ) |  | (118,672 | )
Other expenses |  | — |  |  | (8,521 | ) |  | — |  |  | (1,106 | ) |  | (3,395 | ) |  | (13,022 | )
Provision for income taxes |  | (4,074 | ) |  | (947 | ) |  | (11 | ) |  | (2,408 | ) |  | — |  |  | (7,440 | )
Segment Contribution |  | $ | 78,780 |  |  | $ | 17,239 |  |  | $ | 36,918 |  |  | $ | 88,321 |  |  | $ | (52,075 | ) |  |
Net Income |  |  |  |  |  |  |  |  |  |  |  | $ | 169,183 |
Non-cash amortization income (expense), net |  | $ | 3,669 |  |  | $ | (9,173 | ) |  | $ | (1 | ) |  | $ | 6,957 |  |  | $ | (4,813 | ) |  | $ | (3,361 | )
|  | Year Ended December 31, 2018
(In Thousands) |  | Residential Lending |  | Business Purpose Lending |  | Multifamily Investments |  | Third-Party Residential Investments |  | Corporate/ Other |  | Total
Interest income |  | $ | 245,124 |  |  | $ | 4,588 |  |  | $ | 40,050 |  |  | $ | 68,919 |  |  | $ | 20,036 |  |  | $ | 378,717 |
Interest expense |  | (158,498 | ) |  | (2,252 | ) |  | (34,324 | ) |  | (27,446 | ) |  | (16,519 | ) |  | (239,039 | )
Net interest income |  | 86,626 |  |  | 2,336 |  |  | 5,726 |  |  | 41,473 |  |  | 3,517 |  |  | 139,678 |
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 59,623 |  |  | (57 | ) |  | — |  |  | — |  |  | — |  |  | 59,566 |
Investment fair value changes, net |  | (21,686 | ) |  | (29 | ) |  | 3,979 |  |  | (6,957 | ) |  | (996 | ) |  | (25,689 | )
Other income |  | 12,452 |  |  | — |  |  | — |  |  | — |  |  | 618 |  |  | 13,070 |
Realized gains, net |  | 7,709 |  |  | — |  |  | — |  |  | 19,332 |  |  | — |  |  | 27,041 |
Total non-interest income (loss), net |  | 58,098 |  |  | (86 | ) |  | 3,979 |  |  | 12,375 |  |  | (378 | ) |  | 73,988 |
General and administrative expenses |  | (32,139 | ) |  | (2,597 | ) |  | (869 | ) |  | (2,855 | ) |  | (44,322 | ) |  | (82,782 | )
Other expenses |  | — |  |  | — |  |  | — |  |  | (18 | ) |  | (178 | ) |  | (196 | )
Provision for income taxes |  | (8,033 | ) |  | — |  |  | (16 | ) |  | (3,039 | ) |  | — |  |  | (11,088 | )
Segment Contribution |  | $ | 104,552 |  |  | $ | (347 | ) |  | $ | 8,820 |  |  | $ | 47,936 |  |  | $ | (41,361 | ) |  |
Net Income |  |  |  |  |  |  |  |  |  |  |  | $ | 119,600 |
Non-cash amortization income (expense), net |  | $ | 4,486 |  |  | $ | (290 | ) |  | $ | (1 | ) |  | $ | 12,295 |  |  | $ | (4,111 | ) |  | $ | 12,379 |
|  | Year Ended December 31, 2017
(In Thousands) |  | Residential Lending |  | Business Purpose Lending |  | Multifamily Investments |  | Third-Party Residential Investments |  | Corporate/ Other |  | Total
Interest income |  | $ | 158,819 |  |  | $ | — |  |  | $ | 9,170 |  |  | $ | 60,661 |  |  | $ | 19,407 |  |  | $ | 248,057 |
Interest expense |  | (66,364 | ) |  | — |  |  | (6,107 | ) |  | (21,512 | ) |  | (14,833 | ) |  | (108,816 | )
Net interest income |  | 92,455 |  |  | — |  |  | 3,063 |  |  | 39,149 |  |  | 4,574 |  |  | 139,241 |
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |
Mortgage banking activities, net |  | 53,908 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 53,908 |
Investment fair value changes, net |  | (25,466 | ) |  | — |  |  | 16,196 |  |  | 27,684 |  |  | (8,040 | ) |  | 10,374 |
Other income |  | 12,436 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,436 |
Realized gains, net |  | 3,907 |  |  | — |  |  | — |  |  | 10,200 |  |  | (752 | ) |  | 13,355 |
Total non-interest income (loss), net |  | 44,785 |  |  | — |  |  | 16,196 |  |  | 37,884 |  |  | (8,792 | ) |  | 90,073 |
General and administrative expenses |  | (28,622 | ) |  | — |  |  | (425 | ) |  | (2,028 | ) |  | (46,081 | ) |  | (77,156 | )
Provision for income taxes |  | (6,641 | ) |  | — |  |  | (238 | ) |  | (4,873 | ) |  | — |  |  | (11,752 | )
Segment Contribution |  | $ | 101,977 |  |  | $ | — |  |  | $ | 18,596 |  |  | $ | 70,132 |  |  | $ | (50,299 | ) |  |
Net Income |  |  |  |  |  |  |  |  |  |  |  | $ | 140,406 |
Non-cash amortization income (expense), net |  | $ | 4,946 |  |  | $ | — |  |  | $ | (1 | ) |  | $ | 15,927 |  |  | $ | (3,410 | ) |  | $ | 17,462 |
Schedule Of Corporate And Other | The following table presents the components of Corporate/Other for the years ended December 31, 2019, 2018, and 2017. Table 24.2 – Components of Corporate/Other
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
(In Thousands) |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total |  | Legacy Consolidated VIEs (1) |  | Other |  | Total
Interest income |  | $ | 17,649 |  |  | $ | — |  |  | $ | 17,649 |  |  | $ | 20,036 |  |  | $ | — |  |  | $ | 20,036 |  |  | $ | 19,407 |  |  | $ | — |  |  | $ | 19,407 |
Interest expense |  | (14,418 | ) |  | — |  |  | (14,418 | ) |  | (16,519 | ) |  | — |  |  | (16,519 | ) |  | (14,789 | ) |  | (44 | ) |  | (14,833 | )
Net interest income (loss) |  | 3,231 |  |  | — |  |  | 3,231 |  |  | 3,517 |  |  | — |  |  | 3,517 |  |  | 4,618 |  |  | (44 | ) |  | 4,574 |
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment fair value changes, net |  | (1,545 | ) |  | (72 | ) |  | (1,617 | ) |  | (1,016 | ) |  | 20 |  |  | (996 | ) |  | (8,027 | ) |  | (13 | ) |  | (8,040 | )
Other income |  | — |  |  | 2,711 |  |  | 2,711 |  |  | — |  |  | 618 |  |  | 618 |  |  | — |  |  | — |  |  | — |
Realized gains, net |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (752 | ) |  | (752 | )
Total non-interest (loss) income, net |  | (1,545 | ) |  | 2,639 |  |  | 1,094 |  |  | (1,016 | ) |  | 638 |  |  | (378 | ) |  | (8,027 | ) |  | (765 | ) |  | (8,792 | )
General and administrative expenses |  | — |  |  | (53,005 | ) |  | (53,005 | ) |  | — |  |  | (44,322 | ) |  | (44,322 | ) |  | — |  |  | (46,081 | ) |  | (46,081 | )
Other expenses |  | — |  |  | (3,395 | ) |  | (3,395 | ) |  | — |  |  | (178 | ) |  | (178 | ) |  | — |  |  | — |  |  | — |
Total |  | $ | 1,686 |  |  | $ | (53,761 | ) |  | $ | (52,075 | ) |  | $ | 2,501 |  |  | $ | (43,862 | ) |  | $ | (41,361 | ) |  | $ | (3,409 | ) |  | $ | (46,890 | ) |  | $ | (50,299 | )
(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, 2019 and December 31, 2018. Table 24.3 – Supplemental Segment Information
(In Thousands) |  | Residential Lending |  | Business Purpose Lending |  | Multifamily Investments |  | Third-Party Residential Investments |  | Corporate/ Other |  | Total
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 4,939,745 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,367,215 |  |  | $ | 407,890 |  |  | $ | 7,714,850 |
Business purpose residential loans |  | — |  |  | 3,506,743 |  |  | — |  |  | — |  |  | — |  |  | 3,506,743 |
Multifamily loans |  | — |  |  | — |  |  | 4,408,524 |  |  | — |  |  | — |  |  | 4,408,524 |
Real estate securities |  | 229,074 |  |  | — |  |  | 404,128 |  |  | 466,672 |  |  | — |  |  | 1,099,874 |
Other investments |  | 42,224 |  |  | 21,002 |  |  | 61,018 |  |  | 233,886 |  |  | — |  |  | 358,130 |
Goodwill and intangible assets |  | — |  |  | 161,464 |  |  | — |  |  | — |  |  | — |  |  | 161,464 |
Total assets |  | 5,410,540 |  |  | 3,786,641 |  |  | 4,889,330 |  |  | 3,139,616 |  |  | 769,313 |  |  | 17,995,440 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Residential loans |  | $ | 5,512,116 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,222,668 |  |  | $ | 519,958 |  |  | $ | 7,254,742 |
Business purpose residential loans |  | — |  |  | 141,258 |  |  | — |  |  | — |  |  | — |  |  | 141,258 |
Multifamily loans |  | — |  |  | — |  |  | 2,144,598 |  |  | — |  |  | — |  |  | 2,144,598 |
Real estate securities |  | 364,308 |  |  | — |  |  | 429,079 |  |  | 659,107 |  |  | — |  |  | 1,452,494 |
Other investments |  | 99,984 |  |  | 10,754 |  |  | 15,092 |  |  | 312,688 |  |  | — |  |  | 438,518 |
Total assets |  | 6,186,889 |  |  | 160,950 |  |  | 2,600,150 |  |  | 2,232,276 |  |  | 757,141 |  |  | 11,937,406 |

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