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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Business Segment Financial Information
The following tables present financial information by segment for the three months ended March 31, 2020 and 2019.
Table 24.1 – Business Segment Financial Information
 
 
Three Months Ended March 31, 2020
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
 Total
Interest income
 
$
60,631

 
$
53,060

 
$
46,883

 
$
34,313

 
$
3,194

 
$
198,081

Interest expense
 
(41,402
)
 
(34,990
)
 
(43,286
)
 
(24,471
)
 
(2,522
)
 
(146,671
)
Net interest income
 
19,229


18,070

 
3,597

 
9,842


672

 
51,410

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
(23,081
)
 
(5,330
)
 
—

 
—

 
—

 
(28,411
)
Investment fair value changes, net
 
(196,635
)
 
(142,130
)
 
(227,122
)
 
(304,436
)
 
(509
)
 
(870,832
)
Other income
 
(497
)
 
1,693

 
1,240

 
1

 
—

 
2,437

Realized gains, net
 
1,796

 
—

 
(1,604
)
 
3,660

 
—

 
3,852

Total non-interest income, net
 
(218,417
)

(145,767
)
 
(227,486
)
 
(300,775
)

(509
)
 
(892,954
)
General and administrative expenses
 
(5,632
)
 
(14,333
)
 
(610
)
 
(1,178
)
 
(10,915
)
 
(32,668
)
Other expenses
 
—

 
(92,985
)
 
—

 
1,882

 
(312
)
 
(91,415
)
Benefit from (provision for) income taxes
 
5,330

 
6,582

 
(106
)
 
10,423

 
—

 
22,229

Segment Contribution
 
$
(199,490
)

$
(228,433
)
 
$
(224,605
)
 
$
(279,806
)

$
(11,064
)
 
 
Net Loss
 
 
 
 
 
 
 
 
 
 
 
$
(943,398
)
Non-cash amortization income (expense), net
 
$
367

 
$
(5,363
)
 
$
54

 
$
812

 
$
(367
)
 
$
(4,497
)
Other significant non-cash expense: goodwill impairment
 
$
—

 
$
(88,675
)
 
$
—

 
$
—

 
$
—

 
$
(88,675
)

 
 
Three Months Ended March 31, 2019
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
 Total
Interest income
 
$
66,839

 
$
2,937

 
$
28,208

 
$
28,204

 
$
4,853

 
$
131,041

Interest expense
 
(47,676
)
 
(1,539
)
 
(25,870
)
 
(20,076
)
 
(4,115
)
 
(99,276
)
Net interest income
 
19,163

 
1,398

 
2,338

 
8,128

 
738

 
31,765

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage banking activities, net
 
10,827

 
1,482

 
—

 
—

 
—

 
12,309

Investment fair value changes, net
 
(1,720
)
 
(303
)
 
8,524

 
14,055

 
(397
)
 
20,159

Other income
 
1,449

 
466

 
—

 
—

 
2,710

 
4,625

Realized gains, net
 
4,937

 
—

 
—

 
5,749

 
—

 
10,686

Total non-interest income, net
 
15,493

 
1,645

 
8,524

 
19,804

 
2,313

 
47,779

General and administrative expenses
 
(7,203
)
 
(2,565
)
 
(323
)
 
(663
)
 
(12,405
)
 
(23,159
)
Other expenses
 
—

 
(633
)
 
—

 
(227
)
 
(178
)
 
(1,038
)
Provision for income taxes
 
(501
)
 
(5
)
 
—

 
(377
)
 
—

 
(883
)
Segment Contribution
 
$
26,952

 
$
(160
)
 
$
10,539

 
$
26,665

 
$
(9,532
)
 
 
Net Income
 
 
 
 
 
 
 
 
 
 
 
$
54,464

Non-cash amortization income (expense), net
 
$
1,975

 
$
(732
)
 
$
(136
)
 
$
(271
)
 
$
(491
)
 
$
345
Components of Corporate and Other
The following table presents the components of Corporate/Other for the three months ended March 31, 2020 and 2019.
Table 24.2 – Components of Corporate/Other
 
 
Three Months Ended March 31,
 
 
2020
 
2019
(In Thousands)
 
Legacy Consolidated VIEs (1)
 
Other
 
Total
 
Legacy Consolidated VIEs (1)
 
Other
 
 Total
Interest income
 
$
3,194

 
$
—

 
$
3,194

 
$
4,853

 
$
—

 
$
4,853

Interest expense
 
(2,522
)
 
—

 
(2,522
)
 
(4,115
)
 
—

 
(4,115
)
Net interest income
 
672

 
—

 
672

 
738

 
—

 
738

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
Investment fair value changes, net
 
(391
)
 
(118
)
 
(509
)
 
(374
)
 
(23
)
 
(397
)
Other income
 
—

 
—

 
—

 
—

 
2,710

 
2,710

Total non-interest income, net
 
(391
)
 
(118
)
 
(509
)
 
(374
)
 
2,687

 
2,313

General and administrative expenses
 
—

 
(10,915
)
 
(10,915
)
 
—

 
(12,405
)
 
(12,405
)
Other expenses
 
—

 
(312
)
 
(312
)
 
—

 
(178
)
 
(178
)
Total
 
$
281

 
$
(11,345
)
 
$
(11,064
)
 
$
364

 
$
(9,896
)
 
$
(9,532
)
(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, 2020 and December 31, 2019.
Table 24.3 – Supplemental Segment Information
(In Thousands)
 
Residential Lending
 
Business Purpose Lending
 
Multifamily Investments
 
Third-Party Residential Investments
 
 Corporate/
Other
 
Total
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Residential loans
 
$
4,263,327

 
$
—

 
$
—

 
$
2,131,125

 
$
316,677

 
$
6,711,129

Business purpose residential loans
 
—

 
3,463,742

 
—

 
—

 
—

 
3,463,742

Multifamily loans
 
—

 
—

 
470,484

 
—

 
—

 
470,484

Real estate securities
 
132,326

 
—

 
26,487

 
134,649

 
—

 
293,462

Other investments
 
23,616

 
26,877

 
36,691

 
359,036

 
—

 
446,220

Goodwill and intangible assets
 
—

 
68,483

 
—

 
—

 
—

 
68,483

Total assets
 
4,639,181

 
3,675,336

 
557,964

 
2,735,677

 
692,632

 
12,300,790

 
 
 
 
 
 
 
 
 
 
 
 
 
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